Financial Market Overview
16th August, 2018
- The Indian rupee started off the session on a weak note, hitting a fresh record low of 70.19 to the dollar on Thursday. It fell 29 paise compared to Tuesday’s close. On Tuesday, the currency hit 70 to the dollar for the first time, falling 15 paise intraday to touch intraday all-time low of 70.08 a dollar due to sharp depreciation in Turkish lira after the United States imposed tariffs on steel and aluminum imports, and strong demand to the American currency.
- We expect the pair to trade in the range between 70.05-70.45 today.
- Coming back after a trading holiday on Wednesday, equity benchmarks have resumed the truncated week on a negative note, with the Nifty giving up 11,400 in the opening tick. The Sensex is lower by over 150 points.
- The Sensex is trading lower by 183.89 points or 0.49% at 37668.11, while the Nifty is down 56.80 points or 0.50% at 11378.30. The market breadth is narrow as 326 shares advanced, against a decline of 326 shares, while 69 shares are unchanged.
- Selling is visible among major sectoral indices, with maximum cuts seen in banks as well as metals. A weaker rupee is boosting stocks in the tech space, while pharmaceuticals are trading around half a percent higher
- Asian markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off -0.97% while the Hang Seng is down -0.81%. Where Japan Nikkei 225 is positive by +0.13%.The Australian’s ASX200 is nagative today by -7.3 points and -0.13% down.
- The extent of the pressure on the rupee can be gauged from the currency closing near the 70 level on Tuesday though there was speculation that the Indian central bank may have sold more than a billion dollars, he said. The Reserve Bank of India would be “very well aware” that a daily closing below 70 for the rupee would embolden speculative dollar bulls and that it was highly likely that the central bank would intervene “energetically” if the U.S. currency were to open above 70
European markets finished sharply lower yesterday with shares in France leading the region. The CAC 40 is down 1.82% while Germany’s DAX is off 1.58% and London’s FTSE 100 is lower by 1.49%.
- S. stocks closed lower on Wednesday, with the S&P 500 posting its biggest daily percentage decline since June, as investors turned risk averse on a series of disappointing earnings and escalating global tariff worries.Based on the latest available data, the Dow Jones Industrial Average fell 137.51 points, or 0.54 percent, to 25,162.41, the S&P 500 lost 21.59 points, or 0.76 percent, to 2,818.37 and the Nasdaq Composite dropped 96.78 points, or 1.23 percent, to 7,774.12.
- The dollar index trading rangebound against most asian currenciesDollar index down today by 0.2% at 96.54 after closing little changed in the previous session.10-year Treasury yield at 2.88%.
- U.S. retail sales rose more than expected in July as households boosted purchases of motor vehicles and clothing, suggesting the economy remained strong early in the third quarter. The Commerce Department said retail sales increased 0.5 percent last month. But data for June was revised lower to show sales gaining 0.2 percent instead of the previously reported 0.5 percent rise.