Nov 17 2017

Rupee opens higher by 60 paisa as Moody’s raises India credit rating

Financial Market Overview

17th November, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens higher by 60 paisa at 64.72 against the dollar, after Moody’s Investors Service today raised the sovereign credit rating of the country to investment-grade Baa2 from Baa3 and revised the outlook to stable from positive; pair USDINR now at 64.73, against 65.32 previous close.
  • The decision to upgrade the ratings is underpinned by Moody’s expectation that continued progress on economic and institutional reforms will, over time, enhance India’s high growth potential and its large and stable financing base for government debt, and will likely contribute to a gradual decline in the general government debt burden over the medium term,” the rating agency said in a statement. While India’s high debt burden remains a constraint on the country’s credit profile, the current reforms have reduced the risk of a sharp increase in debt, Moody’s added.
  • Pair to tip in range between today 64.50-64.90.

Indian Equities:-

  • Bulls continued to keep tight control over Dalal Street for second consecutive session as the Sensex rallied nearly 400 points, driven by banks after Moody’s upgraded the Government of India’s local and foreign currency issuer ratings.
  • The 30-share BSE Sensex was up 396.36 points or 1.20 percent at 33,503.18 and the 50-share NSE Nifty gained 117.10 points or 1.15 percent at 10,331.90.

Global Markets:-

  • Asian markets are mixed today as Japanese, Hong Kong  and Australian shares show gains. The Nikkei 225 is up 0.24%, the Hang Seng is up 0.78% and Australian ASX200 is up 0.32%. The Shanghai Composite is trading down 0.57%.
  • Wall Street’s main indexes rose sharply on Thursday boosted by earnings-related gains in Wal-Mart and Cisco. The Dow Jones Industrial Average rose 187.08 points, or 0.8 percent, to 23,458.36, the S&P 500 gained 21.02 points, or 0.82 percent, to 2,585.64 and the Nasdaq Composite added 87.08 points, or 1.3 percent, to 6,793.29.
  • European markets finished higher yesterday with shares in France leading the region. The CAC 40 is up 0.66% while Germany’s DAX is up 0.55% and London’s FTSE 100 is up 0.19%.
  • The dollar index, which measures the greenback against a basket of six major rivals, was last trading down 0.4%, after The Wall Street Journal reported that investigators probing possible Russian interference in the 2016 U.S. presidential election had issued a subpoena in October to President Donald Trump’s campaign, requesting ‘Russia-related’ documents from over a dozen officials.