Jan 04 2018

Rupee opens lower as Fed minutes and upbeat U.S data lifts Dollar

Financial Market Overview

04th January, 2018

Morning Coffee:-                                                                                  



  • Rupee opens lower against the dollar, as hawkish minutes from the Federal Reserve’s December meeting amid upbeat U.S. manufacturing and construction data boosted demand for the greenback. Pair USDINR now at 63.57 against 63.53 previous close.
  • Pair to tip in range between 63.45-63.70 today.

Indian Equities:-

  • Equity benchmarks started off trade on a positive note, with the Nifty hovering around 10,450 level.
  • The 30-share BSE Sensex was up 56.99 points at 33,850.37 and the 50-share NSE Nifty rose 16 points to 10,459.20.
  • ONGC , Axis Bank, L&T, GAIL, Sun Pharma, Dr Reddy’s Labs and Adani Ports were early gainers. Tata Motors, ICICI Bank, Yes Bank and Tech Mahindra were early losers.

Global Markets:-

  • Asian markets are higher today . The Shanghai composite is up 0.41% . The Hang Seng rose 0.45% and ASX200 is trading higher  by 0.03%.
  • The S&P 500 index rose above 2,700 for the first time on Wednesday and other major indexes hit record highs as technology stocks climbed amid indications of robust economic growth in the United States and overseas. The Dow Jones Industrial Average rose 98.67 points, or 0.4 percent, to 24,922.68, the S&P 500 gained 17.26 points, or 0.64 percent, to 2,713.07 and the Nasdaq Composite added 58.63 points, or 0.84 percent, to 7,065.53.
  • European markets finished higher yesterday with shares in Germany leading the region. The DAX is up 0.83% while France’s CAC 40 is up 0.81% and London’s FTSE 100 is up 0.30%.
  • The dollar index, which measures the greenback against a basket of six major rivals, rose 0.3% in an overnight trade, following upbeat U.S. data and supportive minutes from the Fed’s December policy meeting.
  • The U.S. central bank recognized the strength in the labor market and the expansion of the economic activity of the world’s largest economy, suggesting that the authority will remain on path of gradual rate increases. However, the policymaker remained cautious on subdued inflation.
  • Data also showed U.S. factory activity increased more than expected to a reading of 59.7 in December from 58.2 in the previous month. The reading was the second-highest reading in six years. Separately, U.S. construction spending rose 0.8% to an all-time high of $1.257 trillion in November, rising 2.4% on a year-on-year basis.