Oct 26 2018

Rupee Opened Lower After Yuan Down

Financial Market Overview

26th October, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee opened lower against the dollar as the Chinese yuan’s fall to near-two-year lows adds pressure on regional currencies. The rupee is opened at 73.4250 versus the dollar compared with its previous close of 73.28, the intraday volatility in the pair is subsiding and it is positive for the rupee on margins. The odds are that the rupee trades in the 73 to 74 range in the coming days, with risks on the downside on account of the ongoing volatility in global financial markets.
  • The onshore yuan was headed for a third day of losses against the dollar on Friday, falling to near 6.96, a level last recorded in December 2016.
  • We Expect Pair to trade in the range between 73.20 to 73.60

Indian Equities:-

  • Equity benchmarks opened sharply lower on Friday morning with the Nifty breaking 10,100 levels amid weak Asian cues.
  • The 30-share BSE Sensex was down 167.16 points at 33,522.93 and the 50-share NSE Nifty declined 51.70 points or 0.51 percent to 10,073.20.
  • Nifty Midcap index fell half a percent.
  • NBFC, PFC, Ujjivan Financial, Equitas Holding, Ceat, Crompton Consumer and Jubilant Foodworks were under pressure among midcaps. Biocon, Raymond, L&T Technology and Intellect Design gained 1-5 percent.

Global Markets:-

  • Asian markets are lower today as Japanese Chinese and Hong Kong shares fall. The Nikkei 225 is off 0.22% while the Hang Seng is down 1.36%. The Shanghai Composite is off 0.53% And the australian ASX200 is down by -25 points and -0.44% down.
  • European markets finished broadly higher today with shares in France leading the region. The CAC 40 is up 1.60% while Germany’s DAX is up 1.03% and London’s FTSE 100 is up 0.59%.
  • U.S. stocks jumped on Thursday, giving the Nasdaq its biggest daily percentage gain since March, as Microsoft’s upbeat earnings spurred a rebound in technology names and investors snapped up oversold shares.
  • The Dow Jones Industrial Average rose 400.93 points, or 1.63 percent, to 24,984.35, the S&P 500 gained 49.5 points, or 1.86 percent, to 2,705.6 and the Nasdaq Composite added 209.94 points, or 2.95 percent, to 7,318.34.
  • The euro fell to a two month low after European Central Bank chief Mario Draghi reaffirmed that the bank’s 2.6-trillion euro ($2.97 trillion) asset purchase program will end this year and interest rates could rise after next summer, even though the economic outlook has darkened and political turmoil looms in Italy.
  • The dollar index closed at its highest level in more than two months on Thursday, helped by the slide in the euro after the European Central Bank policy decision. The ECB left its benchmark interest rate unchanged as expected and promised to adhere to the laid out timetable for the stimulus exit.
  • Brent crude oil contract 0.5% lower at $76.52 per barrel, after rising by 0.9% yesterday.
  • Dollar index slips 0.1% to 96.61, after rising 0.3% yesterday to over two-month high.