Feb 07 2018

Rupee opens higher as global equities recovers; RBI policy meet eyed

Financial Market Overview

07th February, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens higher as recovery in global equities boosts Asian currencies. Pair USDINR now at 64.08 against 64.24 previous close.
  • India’s rate setting MPC’s decision is due later today. It is widely expected to hold interest rates. However, the panel is expected to adopt a more hawkish tone amid upside risks on inflation in Asia’s third-largest economy.
  • Pair to tip in range between 64.00-64.40 today.

Indian Equities:-

  • Benchmark indices rebounded sharply on Wednesday after witnessing losses in previous six consecutive sessions when the Sensex shed more than 2,000 points, tracking global recovery.
  • Benchmark indices rebounded sharply on Wednesday after witnessing losses in previous six consecutive sessions when the Sensex shed more than 2,000 points, tracking global recovery.
  • SBI, Adani Ports, Dr Reddy’s Labs and Aurobindo Pharma were early gainers while NTPC, HDFC Bank and Lupin were under pressure.

Global Markets:-

  • Asian markets are mixed today ,the Honk Kong Hang Seng is up 1.22%, the Australian ASX200 gains 1.04% while the Shanghai Composite is trading lower by 0.81%.
  • European markets finished sharply lower yesterday with shares in London leading the region. The FTSE 100 is down 2.64% while France’s CAC 40 is off 2.35% and Germany’s DAX is lower by 2.32%.
  • S. stocks posted sharp gains in another wild trading session on Tuesday, as indexes rebounded from the biggest one-day drops for the S&P 500 and the Dow in more than six years that stalled the market’s record run. The Dow Jones Industrial Average rose 567.02 points, or 2.33 percent, to 24,912.77, the S&P 500 gained 46.2 points, or 1.74 percent, to 2,695.14 and the Nasdaq Composite added 148.36 points, or 2.13 percent, to 7,115.88.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended up 0.04% overnight and was last trading little changed.
  • The Republican-controlled U.S. House of Representatives yesterday approved another temporary spending bill to avoid federal government from shutting down. The stopgap bill has now been sent to the Senate. If approved, it will extend federal agency funding till Mar.23, reports said.