Oct 11 2018

Rupee opened lower as wall street meltdown

Financial Market Overview

11Th October, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee touched a fresh record low of 74.48 per dollar on Thursday. It opened lower by 10 paise at 74.30 per dollar versus previous close 74.20.
  • Yesterday rupee ended 18 paise higher at 74.20 per dollar, registered a gain after six consecutive session fall. India’s battered rupee is expected to stay that way for a while, trading near recent record lows over the coming year even as the Reserve Bank of India is forecast to raise rates in December and once more in 2019,
  • We Expect Pair to trade in the range between 74.20 to 74.75

Indian Equities:-

  • It is a gap down opening on D-Street on Thurdsay as global sell-off weighed on Indian indices. The Nifty gave up 10,200 in the opening minutes.
  • The Sensex has tanked over 900 points, while the Nifty is down over 300 points.
  • The Sensex is down 927.62 points or 2.67% at 33833.27, while the Nifty is lower 300.20 points or 2.87% at 10159.90. The market breadth is negative as 56 shares advanced, against a decline of 338 shares, while 3,006 shares were unchanged. There’s selloff across sectors, with maximum pain visible in metals, automobiles, banks, and pharmaceuticals, among others. The midcap index is down 4 percent.

Global Markets:-

  • Asian markets are lower today as Japanese,Chinese and Hong Kong shares fall. The Nikkei 225 is off 3.89% while the Hang Seng is down 3.70%. And the australian ASX200 is down by -150 points and -2.46 down.
  • European markets finished sharply lower yesterday with shares in Germany leading the region. The DAX is down 2.21% while France’s CAC 40 is off 2.11% and London’s FTSE 100 is lower by 1.27%.
  • U.S. stocks tumbled on Wednesday, with the S&P 500 marking its biggest daily decline since Feb. 8, and technology stocks led the losses as rising U.S. Treasury yields sent investors fleeing from risky assets.
  • The Dow Jones Industrial Average fell 831.83 points, or 3.15 percent, to 25,598.74, the S&P 500 lost 94.66 points, or 3.29 percent, to 2,785.68 and the Nasdaq Composite dropped 315.97 points, or 4.08 percent, to 7,422.05.
  • U.S. producer prices rose in September, according to data released on Wednesday. The Labor Department said its producer price index (PPI) increased 0.2% last month. In the 12 months through September, the PPI rose 2.6%.
  • Economists had forecast the PPI rising 0.2% last month and increasing 2.8% from a year ago. The so-called core PPI increased by 0.2% from a month earlier and rose 2.5% in the 12 months through September. Those numbers matched market expectations.
  • The German government has cut its forecasts for growth this year and next in Europe’s largest economy and sees an escalation in the global trade dispute as the main risk for the future, a document seen by Reuters on Wednesday showed.The government – due to present its updated forecasts on Thursday – slashed its 2018 and 2019 growth forecasts to 1.8 percent, compared with its previous predictions of 2.3 percent and 2.1 percent respectively.