Oct 03 2018

Rupee Opened To its Fresh Record Low As Crude Oil Prices Reached a Fresh Four-Year High

Financial Market Overview

03rd October, 2018

Rupee:-

  • The Indian rupee opened at all Time low 73.24 per dollar on Wednesday as it crossed 73 for the first time. It has opened lower by 33 paisa versus Monday’s close 72.91.
  • Rupee continued to remain under pressure and today is expected to open at fresh record low levels following sharp surge in global crude oil prices. Brent crude is now at four-year high levels on worries that global supplies will drop due to Washington’s sanctions on Iran,
  • We expect the pair to trade in the range between 72.97 to 73.50

Indian Equities:-

  • Front line indices started off the day sharply lower on Wednesday, with the Nifty falling below 11,000 levels following further depreciation in Indian rupee.
  • The Nifty 50 declined 65.8 points to 10,942.50 and the Sensex lost 166 points to 36,359.45.
  • HDFC Bank, ICICI Bank, TCS, Maruti Suzuki, Bharti Infratel, Eicher Motors, IOC, Axis Bank and L&T were under pressure in early trade.
  • Yes Bank remained strong since opening, rising more than 6 percent. Bajaj Finance, Bajaj Finserv, ITC and Infosys were up half a percent each.

Global Markets:-

  • Asian markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.06% while the Hang Seng is down 0.12%. As the lift from an agreement that saved the North American free trade deal faded, with cautious views on the global economy curbing risk sentiment. Australian’s ASX200 is gain by 17 points and 0.29%.
  • European markets finished lower yesterday with shares in France leading the region. The CAC 40 is down 0.71% while Germany’s DAX is off 0.42% and London’s FTSE 100 is lower by 0.28%.
  • The Dow hit a record closing high on Tuesday, but a drop in Facebook shares weighed on both the S&P 500 and Nasdaq.
  • The Dow Jones Industrial Average rose 122.73 points, or 0.46 percent, to 26,773.94, the S&P 500 lost 1.18 points, or 0.04 percent, to 2,923.41, and the Nasdaq Composite dropped 37.76 points, or 0.47 percent, to 7,999.55.
  • UK construction sector slowed to its weakest output in six months in September, according to a closely watched business survey released on Tuesday. Construction purchasing managers’ index fell to 52.1 in September, compared to forecasts for a reading of 52.8. The prior month’s reading was 52.9.
  • Hong Kong’s retail sales grew at a faster pace in August compared with the previous month, government data showed on Tuesday, although the outlook remains overshadowed by external headwinds such as the impact of China-U.S. trade tensions. August retail sales rose 9.5 percent from a year earlier in value terms to HK $38.2 billion ($4.87 billion), marking their eighteenth month of expansion. That compares with a 7.8 percent rise in July.
  • Dollar index 0.2% lower at 95.30, after rising to near one-month high yesterday.