Nov 20 2018

Rupee Opened Higher After RBI, Govt Seen Cooperating

Financial Market Overview

20th November, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the dollar amid signs of a truce between New Delhi and the Reserve Bank of India following a closely watched board meeting of the nation’s central bank. The Indian currency opened at 71.45 versus its previous close of 71.64.
  • The rupee would have opened much higher if it were not for the selloff on Wall Street equities and across regional equities, pointing to the decline in the one-month NDF yesterday to below 71.50. The outcome of the RBI’s board meeting was constructive for the rupee and removes a major “impediment of sorts” for the local unit..
  • We expect USD/INR to trade in a range between 71.20 – 71.60 today.

 Indian Equities:-

  • Benchmark indices are trading higher in the opening session with Nifty trading above 10,600 level.
  • The Sensex is down -111 points at 35,661 or 0.30 % while Nifty is down by -45 points at 10732 or 0.42 % present.

Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.86% while the Hang Seng is down 2.16%. The Shanghai Composite is off -1.63%
  • The Australian ASX 200 is down by -41 points or 0.72 %.
  • European markets finished lower today with shares in Germany leading the region. The DAX is down 0.85% while France’s CAC 40 is off 0.79% and London’s FTSE 100 is lower by 0.19%.
  • U.S. stocks dropped on Monday as investors dumped Apple, internet and other technology shares, further shaking confidence in a group of stocks that has propelled the long bull market.
  • The Dow Jones Industrial Average fell 395.78 points, or 1.56 percent, to 25,017.44, the S&P 500 lost 45.56 points, or 1.67 percent, to 2,690.71 and the Nasdaq Composite dropped 219.40 points, or 3.03 percent, to 7,028.48.
  • The dollar index dropped for the fourth time in five days on Monday, closing at a near two-week low. The fall in the dollar index comes amid doubts over how much the Federal Reserve would raise interest rates further. The questions related to the pace of rate increases came amid recent comments by Fed Vice Chairman Richard Clarida that short term interest rates in the world’s largest economy were close to neutral.
  • U.S. home builder sentiment recorded its steepest one-month drop in over 4-1/2 years in November as rising mortgage rates and tight home inventory squeezed the real estate sector, the National Association of Home Builders said on Monday.
  • The NAHB and Wells Fargo housing market index fell to 60 points in November, which was the lowest level since the 59 recorded in August 2016. That compared with a reading of 68 in October and a consensus reading of 67
  • Brent crude oil contract 0.1% lower at $66.74 per barrel.
  • Ten-year US yield at 3.0646%. The yield had dropped to 3.056% yesterday, lowest since Oct 3.