Nov 13 2018

Rupee Opened Higher As Crude Oil Fall

Financial Market Overview

13th November, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the U.S. currency as a selloff on Wall Street and fresh 16-month highs on the dollar index would likely be offset by falling crude oil and lower-than-expected domestic retail inflation.
  • The rupee opened at 72.79 versus its previous close of 72.89. The intraday reversal in crude oil yesterday and more losses in Asia trading today will help cushion the impact of a “significant” deterioration in risk sentiment across the world. The more-than-expected easing in India’s consumer price inflation index will further lend support to the rupee.
  • We expect USD/INR to trade in a range between 72.50 – 72.90 today.

 Indian Equities:-

  • The market is off to a negative start, with the Sensex shedding over 100 points, while the Nifty is down around one-third of a percent.
  • Automobiles, banks, energy, consumption, and IT stocks are trading in the red. In the broader markets, midcaps are trading higher. The Nifty Midcap index is down 0.40 percent.
  • Shares of Bharti Airtel, Coal India, HPCL and IOC are the top gainers, while Tata Motors, ICICI Bank, and Eicher Motors have lost the most.
  • The Sensex is down 119.43 points or 0.34% at 34693.56, while the Nifty is down 37.30 points or 0.36% at 10444.90. The market breadth is narrow as 250 shares advanced, against a decline of 229 shares, while 34 shares were unchanged.

 Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 3.21% while the Hang Seng is down 0.75%. Where the Chinese Shanghai Composite is up by 0.11%. The Australian ASX 200 is down by -105 points or -1.77 %.
  • European markets finished broadly lower today with shares in Germany leading the region. The DAX is down 1.77% while France’s CAC 40 is off 0.93% and London’s FTSE 100 is lower by 0.74%.
  • Wall Street’s major indexes tumbled on Monday as shares of Apple Inc and Goldman Sachs Group Inc dragged down the technology and financial sectors.
  • The Dow Jones Industrial Average fell 602.12 points, or 2.32 percent, to 25,387.18, the S&P 500 lost 54.79 points, or 1.97 percent, to 2,726.22 and the Nasdaq Composite dropped 206.03 points, or 2.78 percent, to 7,200.87.
  • The dollar index’s rise on Monday was helped by the Wall Street’s tumble and a further decline in the euro and the British pound. The euro dropped near to 1.12 against the dollar amid worries involving Italy and the pound declined below 1.29 on fears of a no-deal Brexit. The dollar is also benefiting from increasing odds that the Federal Reserve will continue increasing short-term U.S. borrowing costs. According to the CME Fed Watch Tool, there is more than 75% probability that the central bank will raise rates once again next month.
  • Brent crude headed for a fourth day of decline. Yesterday, Saudi Arabia’s pledge to cut supply next month had pushed prices higher above $71, but U.S. President Donald Trump’s comments that the Middle East nation and OPEC will hopefully not be cutting production prompted a pullback.
  • Asian currencies and equities came under pressure today after the S&P 500 Index dropped by about 2% yesterday and the dollar index extended advance to reach its highest since June last year.