Financial Market Overview
27th August, 2018
• The Indian rupee gained in the opening trade on today. It has opened higher by 15 paise at 69.76 per dollar versus 69.91 Friday closed. After China resumed the use of a counter-cyclical factor in yuan’s daily fixing to support the currency reeling under the impact of a trade spat with the U.S. The rally in the yuan and the decline in the dollar index after the Federal Reserve chief’s comments will likely prompt the offshore dollar demand to ease off, while importer buying may keep the rupee from doing anything major.
• We Expect the pair to trade in the range between 69.55 to 69.95
• It’s a good start to this Monday morning on D-Street as equities rode on positive global sentiment. The Sensex and Nifty have hit fresh record highs. The 50-share index is also trading above 11,600.
• Banks and metals are leading the charts among sectoral indices, while pharmaceuticals, FMCG and infrastructure are following them. There is strong growth in midcaps seen as well, with the Nifty Midcap gaining around a percent.
• The Sensex is up 204.70 points or 0.54% at 38456.50, while the Nifty is up 62.60 points or 0.54% at 11619.70.
• Asian markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.70% while the Hang Seng is up 1.52%. And The Nikkei 225 is up 0.70%The Australian’s ASX200 is little positive today by 16 points and 0.26% up.
• European markets finished higher on Friday with shares in France leading the region. The CAC 40 is up 0.24% while Germany’s DAX is up 0.23% and London’s FTSE 100 is up 0.19%.
• The benchmark S&P 500 index clinched its longest-ever bull market run on Friday, closing above its previous January high, as Federal Reserve Chairman Jerome Powell affirmed the U.S. central bank’s current pace of rate hikes.
• The Dow Jones Industrial Average rose 133.37 points, or 0.52 percent, to 25,790.35, the S&P 500 gained 17.72 points, or 0.62 percent, to 2,874.7 and the Nasdaq Composite added 67.52 points, or 0.86 percent, to 7,945.98.
• The dollar index fell on Friday to close out its worst weekly performance since the middle of February, after Fed chair Jerome Powell said he saw little risk of inflation accelerating in U.S. beyond the central bank’s target. While Powell reaffirmed that the Fed’s current monetary stance of raising interest rates at a measured pace was necessary in view of an upbeat economy, his remarks on inflation eased fears of the authority needing to raise the rates quicker.
• Fears of the Chinese yuan plunging past 7 against the dollar have been ameliorated after China reintroduced its countercyclical adjustment factor.