Oct 18 2017

Rupee opened marginally higher as Dollar halted its gains

Financial Market Overview

18th October, 2017

Morning Coffee:-                                                                                  



  • Indian rupee open marginally higher at 64.98 against the dollar, in line with most Asian currencies, as the greenback halted gains on NAFTA trade pact developments, while traders are also expected to cut positions in thin-volume trade ahead of a long weekend; pair USDINR now at 64.97 against 65.02 previous close.
  • Indian financial markets will remain shut tomorrow and Oct. 20 for Diwali holidays.
  • Pair to tip in range between today 64.90-65.12.

Indian Equities:-

  • Equity benchmarks opened lower on profit booking Wednesday, with the Sensex falling nearly 100 points, dragged by banks after disappointing numbers from Axis Bank.
  • The 30-share BSE Sensex was down 98.31 points to 32,510.85 and the 50-share NSE Nifty fell 28.10 points to 10,206.40.

Global Markets:-

  • Asian markets are mixed today. The Shanghai Composite is up 0.18%, Australian index ASX200 is higher by 0.15% and Japan’s Nikkei rises 0.09% while the Hang Seng is trading lower by 0.07%.
  • S. stocks were mixed at the close on Tuesday, as gains in the Healthcare, Utilities and Telecoms sectors led shares higher while losses in the Financials, Consumer Goods and Basic Materials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average gained 0.18% to hit a new all time high, while the S&P 500 index gained 0.07%, and the NASDAQ Composite index declined 0.01%.
  • European markets finished lower yesterday with shares in London leading the region. The FTSE 100 is down 0.14% while Germany’s DAX is off 0.07% and France’s CAC 40 is lower by 0.03%.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.2% higher overnight. It was last trading down less than 0.1%, as discussions over the future of the North American Free Trade Agreement, or NAFTA, got prolonged into the first quarter of next year to solve differences after Canada and Mexico’s rejection to what they saw as hard-line U.S. suggestions.
  • Gains in the greenback was supported earlier this week amid reports that Trump met Stanford University economist John Taylor to discuss the job of Federal Reserve Chair, after the current chair Janet Yellen’s tenure ends early next year.  Taylor, seen as even more hawkish than Yellen, had made an impression on Trump after an hour-long interview at the White House last week, Bloomberg reported citing people familiar with the matter.
  • Trump will meet Yellen tomorrow to search a new candidate to replace her, whose term ends in February. Other candidates on the list for potential candidates include Jerome Powell, a Fed governor; Kevin Warsh, a former Fed governor; the president’s top economic adviser Gary Cohn; and Yellen.