Oct 24 2018

Rupee Opened Higher As Crude Oil Prices Plung

Financial Market Overview

24th October, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened higher against the dollar after a pledge by Saudi Arabia to maintain adequate supply sent Brent crude to one-month lows.
  • The rupee opened at 73.23 versus the dollar compared with its previous close of 73.5650.
  • Brent crude and U.S. benchmark crude dropped by 4% each yesterday after Saudi Arabian Energy Minister Khalid Al-Falih reportedly said that the world’s largest oil producer would make up for any shortfall in supply that ensues on account of the U.S. sanctions on Iran. Oil prices rallied in recent weeks amid expectation that the U.S. sanctions on Iran.
  • We Expect Pair to trade in the range between 73.05 to 73.65

Indian Equities:-

  • Indices are off to a great start on Wednesday morning, with the Nifty surging past 10,250-mark.
  • The Sensex is up 426.32 points or 1.26% at 34273.55, while the Nifty is higher by 133.40 points or 1.31% at 10280.20. The market breadth is positive as 394 shares advanced, against a decline of 93 shares, while 3,095 shares were unchanged.
  • Buying is visible across sectors, with maximum gains seen among financials, energy, metals, pharma and consumption names.  In the broader markets, the midcap index is up over 1 percent.

Global Markets:-

  • Asian markets are higher today as Chinese and Hong Kong shares show gains. Where The Japanese Nikkei 225 is down by -0.12% while the Hang Seng is up 1.01%. . The Shanghai Composite is up by 1.53% And the australian ASX200 is down by -2 points and -0.04 % down.
  • European markets finished sharply lower yesterday with shares in Germany leading the region. The DAX is down 2.17% while France’s CAC 40 is off 1.69% and London’s FTSE 100 is lower by 1.24%.
  • U.S. stocks fell on Tuesday as worries about the outlook for corporate earnings dampened sentiment, though the three major indexes ended well off the day’s lows as investors snapped up beaten-down shares in late trading.
  • The Dow Jones Industrial Average fell 125.98 points, or 0.5 percent, to 25,191.43, the S&P 500 lost 15.19 points, or 0.55 percent, to 2,740.69 and the Nasdaq Composite dropped 31.09 points, or 0.42 percent, to 7,437.54.
  • Japanese manufacturing activity expanded in October at the fastest rate in six months as new export orders returned to growth, a preliminary survey showed on Wednesday, a sign most companies have so far avoided damage from trade frictions.
  • The Flash Markit/Nikkei Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 53.1 in October from a final 52.5 in September.
  • The index remained above the 50 threshold that separates contraction from expansion for the 26th consecutive month and reached the highest level since April.
  • U.S. company earnings growth is slowing after a bumper start to the year, and the reality of an escalating trade war between two of the world’s largest economies is starting to weigh on companies ranging from Caterpillar Inc to Ford Motor Co .
  • While earnings growth is still high at 22 percent so far this quarter, the amount by which S&P 500 index companies are beating analyst estimates is nearly half of what it was during the first quarter.