Dec 27 2018

Rupee Opened Lower As Crude Rebound 8 Percent

Financial Market Overview

27th December, 2018

Morning Coffee:-                                                                        



  • The Indian rupee opened lower against the dollar today, as gains in regional shares will help offset the overnight rebound in crude oil prices.
  • The rupee opened at 70.2025 versus its previous close of 70.07. Reversal in equities tracking cues from U.S. shares will overshadow the nearly 8% jump in crude prices. Month-end dollar demand from importers may push the rupee down during the day.
  • We expect USD/INR to trade in a range between 70.00 to 70.50 today.

Indian Equities:-

  • Equity benchmarks have had a good start in opening trade. The Nifty is above 10,800 levels.
  • The Sensex is up 329 points or 0.92% at 35979, and the Nifty up 89.30 points or 0.83% at 10819.00.

Global Markets:-

  • Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 3.74% while the Hang Seng is up 0.56%. The Shanghai Composite is trading up by 0.56%.
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.21%, while the CAC 40 led the FTSE 100 lower. They fell 1.45% and 0.52% respectively.
  • The Dow Jones Industrial Average surged at least 1,000 points in a single session for the first time on Wednesday in a broad stock rebound that also saw the S&P 500 post its biggest one-day percentage gain in more than nine years after the benchmark index was on the brink of a bear market. The Dow Jones Industrial Average rose 1,086.45 points, or 4.99 percent, to 22,878.65, the S&P 500 gained 116.63 points, or 4.96 percent, to 2,467.73 and the Nasdaq Composite added 361.44 points, or 5.84 percent, to 6,554.36.
  • Home prices in 20 U.S. cities slowed in October for a seventh consecutive month, extending the longest streak since 2014, a sign of waning demand amid higher mortgage rates and elevated property values. The 20-city index of property values increased 5 percent from a year earlier, after rising 5.2 percent in the prior month, S&P CoreLogic Case-Shiller data showed Wednesday.
  • U.S. trade team will travel to Beijing in the week of Jan. 7 to hold talks with Chinese officials, easing fears about an escalation of a trade war between the two nations.
  • The dollar index rose 0.5% overnight, tracking a surge in U.S. Treasury yields amid positive sentiments for the U.S. economy.
  • Earnings growth at China’s industrial firms in November fell for the first time in nearly three years in the face of slackening domestic and external demand, highlighting rising risks to the world’s second-largest economy.The gloomy data points to a further loss of economic momentum as a trade dispute with the United States piles pressure on China’s vast manufacturing sector and as firms, bracing for a tough year ahead.