Oct 16 2018

Rupee Opened Higher After Soft US Retail Sales Data

Financial Market Overview

16Th October, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the dollar after lower-than-expected September U.S. retail sales data prompted a broad decline in the U.S. currency.
  • The rupee is opened 73.8050 versus the dollar compared with its previous close of 73.83, The narrowing of India’s trade gap last month and Brent crude at $80 a barrel are positive points for the rupee currently, while continued foreign outflows from domestic equities and bonds and concerns over U.S. interest rates are headwinds. The biggest risk factor from the rupee’s point of view is oil prices again flaring up on account of Saudi Arabia tensions.
  • We Expect Pair to trade in the range between 74.05 to 73.55

Indian Equities:-

  • It is a positive start on the Dalal Street with Nifty is trading around 10,550, while Sensex is up 100 points.
  • The Sensex is up 69.48 points or 0.20% at 34934.58, and the Nifty up 20.50 points or 0.20% at 10533. Share of Infosys is trading higher by 1 percent as company is going to announce its second quarter numbers later today. Midcap and small cap are trading with 0.5 percent gain.
  • Data released during the last hour of trade yesterday showed that India’s trade deficit narrowed to $13.98 billion in September, compared with $17.39 billion in the previous month.

Global Markets:-

  • Asian markets are lower today as Japanese ,Chinese and Hong Kong shares fall. The Nikkei 225 is off 0.24% while the Hang Seng is down 0.15%. The Shanghai Composite is off -0.15% And the Australian ASX200 is up by 27 points and 0.47% up.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.78% and the FTSE 100 rose 0.48%. The CAC 40 lost 0.02%.
  • U.S. stocks ended lower in a choppy trading session on Monday as technology stocks were pressured by lingering worries over interest rates and corporate earnings.
  • The Dow Jones Industrial Average fell 89.44 points, or 0.35 percent, to 25,250.55, the S&P 500 lost 16.35 points, or 0.59 percent, to 2,750.78, and the Nasdaq Composite dropped 66.15 points, or 0.88 percent, to 7,430.74.
  • U.S. retail sales barely rose in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly two years.
  • Retail sales edged up 0.1 percent last month after a similar gain in August. Economists polled by Reuters had forecast retail sales increasing 0.6 percent in September. Retail sales in September rose 4.7 percent from a year ago.
  • The U.S. government closed the 2018 fiscal year $779 billion in the red, its highest deficit in six years, as Republican-led tax cuts pinched revenues and expenses rose on a growing national debt. The data also showed a $119 billion budget surplus in September, which was larger than expected and a record for the month.
  • Dollar index little changed 95.06 after falling by 0.2% in previous session.
  • Ten-year US yield at 3.165%.