May 15 2018

Rupee opens lower as retail inflation rises more than expected; State poll results eyed

Financial Market Overview

15th May, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens lower after India consumer inflation rises more than expected. Pair USDINR now at 67.58, off 67.80 early high and highest since Jan 31, 2017, and against 67.51 previous close.
  • India CPI rises 4.6% in April, up from 4.3% in prior month and higher than 4.28% pace expected by economists in a poll. Core inflation likely climbed to near 6% last month, economists estimate.
  • Early leads for Karnataka elections show close BJP edging ahead of Congress. “The early trends are favor of the BJP.
  • Pair to tip in range between 67.30-67.80.

Indian Equities:-

  • Benchmark indices were flat in opening trade amid rising bond yields and vote counting in Karnataka.
  • The 30-share BSE Sensex was up 7.33 points at 35,564.04 and the 50-share NSE Nifty fell 9.80 points to 10,796.80.

Global Markets:-

  • Asian markets are lower today. The Hong Kong’s Hang Seng is off 0.98% , the Australian ASX200 is down 0.38% and the Shanghai Composite is trading lower by 0.23%.
  • European markets finished lower on Monday with shares in Germany leading the region. The DAX is down 0.18% while London’s FTSE 100 is off 0.18% and France’s CAC 40 is lower by 0.02%.
  • Wall Street ended a choppy session slightly higher on Monday as weakness in defensive stocks offset trade optimism following U.S. President Donald Trump’s conciliatory remarks toward China’s ZTE Corp, calming the waters amid U.S.-China trade tensions. The Dow Jones Industrial Average rose 70.1 points, or 0.28 percent, to 24,901.27, the S&P 500 gained 2.57 points, or 0.09 percent, to 2,730.29 and the Nasdaq Composite added 8.43 points, or 0.11 percent, to 7,411.32.
  • China released its industrial production data on Tuesday morning which came in better than expected, 7% versus the estimated 6.4%.
  • The dollar dropped slightly against the other major currencies on Tuesday morning in Asia. The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 92.52, down 0.03%.