Rupee opened lower as government Measures Underwhelm

Rupee opened lower as government Measures Underwhelm

17 Sep 2018 09:49 AM
Myforexeye Research Report


Financial Market Overview

17th September, 2018

Morning Coffee:-



  • The Indian rupee slipped in the early trade on today. It opened lower by 67 paise at 72.52 per dollar versus 71.85 Friday.
  • The government on Friday announced an array of steps, including removal of withholding tax on Masala bonds, relaxation for foreign portfolio investors and curbs on non-essential imports to contain the widening current account deficit (CAD), which has widened to 2.4 percent of GDP in April-June, and checks the rupee’s fall against the dollar.
  • We expect the pair to trade in the range between 72.20 to 72.70


Indian Equities:-

  • It’s a gap-down opening on the market on this Monday morning, with the Nifty shedding 90 points in the opening tick. The Sensex is lower by over 200 points. 
  • Weakness in Asian markets along with a further selloff in rupee, which fell 1 percent, are weighing on the indices. 
  • The Sensex is down 248.84 points or 0.65% at 37841.80, while the Nifty is down 90.20 points or 0.78% at 11425.00. The market breadth is negative as 318 shares advanced, against a decline of 342 shares, while 93 shares were unchanged. 


Global Markets:-

  • Asian markets are lower today, Chinese and Hong Kong shares are down, while the Nikkei 255 is closed on account of Respect for the Aged day. The Shanghai Composite is off 0.85% and Hang Seng is down 1.60%. The Australian's ASX200 is positive today by 14 points and 0.24% .
  • European markets finished higher on Friday with shares in Germany leading the region. The DAX is up 0.57% while France's CAC 40 is up 0.46% and London's FTSE 100 is up 0.31%.
  • U.S. stocks ended little changed on Friday as financials gained with bond yields, while news that President Donald Trump instructed aides to proceed with tariffs on about $200 billion more of Chinese products limited gains.
  • The Dow Jones Industrial Average rose 8.68 points, or 0.03 percent, to 26,154.67, the S&P 500 gained 0.79 point, or 0.03 percent, to 2,904.97 and the Nasdaq Composite dropped 3.67 points, or 0.05 percent, to 8,010.04.
  • Britain's government will handle European Union withdrawal next March -- household expectations for the year to come were the second-strongest since August 2016. The IHS Markit Household Finance Index held unchanged at 45.9 in September, the strongest reading since a series high of 46.2 recorded in January 2015.
  • The India’s trade deficit last month narrowed to $17.4 billion from 18 billion in the prior month. Oil imports rose by 51.6% on-year to $11.83 billion in August, while non-oil imports increased 18.2% to $33.41 billion. Imports climbed by 25.4% on year.



Date : Sep-2018

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