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Dec 13 2017

Rupee opened lower as nation’s CPI inflation jumped to 15-month high and Industrial output growth slows down

Financial Market Overview

13th December, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee edge lower against the dollar, as the nation’s retail inflation jumped to a 15-month high last month, while industrial output grew at its slowest pace in three months in October. An upbeat U.S. wholesale price data reinforced expectations of a Federal Reserve rate increase later today, lifting demand for the dollar. Pair USDINR now at  64.53 against. 64.40 at the previous close
  • India’s retail inflation accelerated to 4.88% in November from a year earlier, the fastest pace of annual expansion since August last year, as prices of food and fuel turned costlier, government data showed yesterday. Economists polled had expected the print to increase to 4.2%, from 3.58% in October. A separate data showed India’s industrial output rose 2.2% in October from a year earlier, the slowest pace of expansion since July. The reading trailed September’s revised expansion of 4.1%, and also lagged a 3% median estimate in a ’ poll of economists.
  • Pair to tip in range between 64.40-64.60 today.

Indian Equities:-

  • Benchmark indices began the day on a lower note, with the Sensex falling nearly 100 points in the first minutes of trade before cutting those losses, while the Nifty was down by almost quarter of a percent.
  • The Sensex was down 91.65 points at 33136.34, while the Nifty fell 23.00 points or 0.22% at 10217.20. The market breadth was narrow as 409 shares advanced against a decline of 305 shares, while 43 shares were unchanged.

Global Markets:-

  • Asian markets are mixed today . The Hang Seng is up 0.24% . The Shanghai Composite fell by 0.12% and ASX200 is trading lower  0.10% .
  • The S&P 500 and the Dow registered record closing highs on Tuesday with a boost from bank stocks as investors eyed a potential cut in U.S. corporate taxes and continued economic growth after strong inflation data. Based on the latest available data, the Dow Jones Industrial Average  rose 119.39 points, or 0.49 percent, to 24,505.42, the S&P 500 gained 4.18 points, or 0.16 percent, to 2,664.17 and the Nasdaq Composite  dropped 12.76 points, or 0.19 percent, to 6,862.32.
  • European markets finished higher yesterday with shares in France leading the region. The CAC 40 is up 0.75% while London’s FTSE 100 is up 0.63% and Germany’s DAX is up 0.46%.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.25% higher in an overnight trade, after data released by the Labor Department showed U.S. producer prices rose 3.1% last month from a year ago, its biggest gain since January 2012 and after rising 2.8% in October. Economists polled had expected the print to rise to 2.9%.
  • Investors await the outcome of Federal Reserve’s a two-day monetary policy review today, where the authority is widely expected to increase rates for a third time in 2017. U.S. consumer inflation data is due later today.