Oct 25 2018

Rupee Opened Lower As Wall Street Rout

Financial Market Overview

25th October, 2018

Morning Coffee:-                                                                        

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee will likely open lower against the dollar after a selloff in U.S. equities spilled over to Asian currencies and equities.
  • The rupee opened at 73.34 versus the dollar compared with its previous close of 73.15. While the slump in U.S. equities is an obvious negative for the rupee, it brings in a couple of positives in the form of a further decline in crude oil prices and U.S. yields. The tumble on Wall Street this month reduces the probability of aggressive monetary tightening by the Federal Reserve, another helpful factor for the rupee and other emerging market currencies
  • We Expect Pair to trade in the range between 73.10 to 73.50

Indian Equities:-

  • It is a gap down opening for the market on Thursday morning. The Nifty is down almost 100 points, while the Sensex has opened around 300 points lower.
  • Selling is visible across all sectors, with banks, auto, metals, pharma and infrastructure sectors seeing some pain. The Nifty Midcap index is trading over a percent lower.
  • The Sensex is down 296.17 points or 0.87% at 33737.79, while the Nifty is down 90.40 points or 0.88% at 10134.40. The market breadth is negative as 45 shares advanced, against a decline of 145 shares, while 3,405 shares were unchanged. Bharti Airtel, Infosys, and India bulls Housing are the top losers, while NTPC and HDFC Bank have gained the most.

Global Markets:-

  • Asian markets are lower today as Japanese ,Chinese and Hong Kong shares fall. Where the Nikkei 225 is off 2.80% while the Hang Seng is down 1.80%. The Shanghai Composite is off -1.37%. And the australian ASX200 is down by -121 points and -2.08 % down.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.11%, while the DAX led the CAC 40 lower. They fell 0.73% and 0.29% respectively.
  • U.S. stocks tumbled again on Wednesday, confirming a correction for the Nasdaq and erasing the Dow and S&P 500’s gains for the year, as disappointing forecasts from chipmakers and weak home sales data fueled worries about economic and profit growth.
  • The Dow Jones Industrial Average fell 608.15 points, or 2.41 percent, to 24,583.28, the S&P 500 lost 84.53 points, or 3.08 percent, to 2,656.16 and the Nasdaq Composite. dropped 329.14 points, or 4.43 percent, to 7,108.40.
  • Sales of new U.S. single-family homes fell more than expected in September, according to data released on Wednesday. The Commerce Department said new home sales decreased 5.5% to a seasonally adjusted annual rate of 553,000 units last month. Economists had forecast new home sales falling 1.4% to a pace of 627,000 units last month. New home sales, which are drawn from permits, are volatile from month to month.
  • Euro zone private sector activity grew at the slowest pace in more than two years in October, as an export-led slowdown widened out to the service sector, according to data released on Wednesday. The preliminary reading of the Markit manufacturing purchasing managers’ index fell to a 26-month low of 52.1 this month from 53.2 in September.
  • A reading above 50.0 on the index indicates industry expansion, below indicates contraction. The services PMI slowed to a 24-month low of 53.3 compared to expectations for 54.5, from 54.7 a month earlier.