Nov 10 2017

Rupee opens lower as Oil prices rise on political tensions

Financial Market Overview

10th November, 2017

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Indian rupee opens lower against the dollar, as gains in crude oil prices dent sentiment for the local assets, even as the greenback fell overnight amid uncertainty over a potential delay in U.S. tax reforms.; pair USDINR now at 65.05 against 64.94 previous close.
  • Pair to tip in range between today 64.90-65.20.

Indian Equities:-

  • Equity benchmarks opened mildly lower on last day of the week Friday, with the Nifty falling below 10,300 level. Investors focussed on GST meet outcome and SBI earnings later today.
  • The 30-share BSE Sensex was down 67.70 points at 33,183.23 and the 50-share NSE Nifty fell 24.80 points to 10,284.20.
  • Aurobindo Pharma, Jindal Steel, SBI and HUL were mildly higher. Tata Motors, M&M, BPCL, Bosch, Motherson Sumi, Axis Bank and Hero MotoCorp were early losers.

Global Markets:-

  • Asian shares slipped on Friday. Japan’s Nikkei lost 1.03%, Australian ASX200 is down 0.32%, Shanghai Composite fell 0.10% and Hong kong shares show mild gains with Hang Seng trading 0.07% higher.
  • S. stocks were lower at the close on Thursday, as losses in the Industrials, Technology and Basic Materials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 0.48%, while the S&P 500 index declined 0.46%, and the NASDAQ Composite index lost 0.73%.
  • European markets finished broadly lower yesterday with shares in Germany leading the region. The DAX is down 1.49% while France’s CAC 40 is off 1.16% and London’s FTSE 100 is lower by 0.61%.
  • Crude oil prices rose nearly 1% overnight, underpinned by supply cuts by major exporters and increasing tensions in the Middle East. Yesterday, Saudi Arabia warned its citizens who are travelling to Lebanon or are currently there to vacate as soon as possible.
  • The U.S. Department of Labour reported that initial jobless claims increased more than expected to 239,000 last week, dampening optimism over the strength of the job market.
  • Dollar index nearly flat at 94.482, after declining 0.4% overnight as Senate Republicans proposed one-year delay in corporate tax cut. U.S. Republican Senators said they wanted to slash corporate tax rate in 2019, later than House’s proposed schedule of 2018.