Feb 01 2018

Rupee opens lower on hawkish FED; Indian budget eyed

Financial Market Overview

01st February, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee open weaker against the dollar at 63.64, in line with most Asian peers, as risk appetite remained soft following a hawkish Federal Reserve policy. Pair USDINR now at 63.64 against 63.58previous close.
  • The federal budget for next fiscal that starts Apr. 1 is due at 11:00 a.m. today. Investors will keenly watch the proceedings to see if New Delhi maintains fiscal prudence in its last full budget before general elections next year.
  • Pair to tip in range between 63.50-63.90 today.

Indian Equities:-

  • The market has begun the Budget Day trading session on a positive note, with the Sensex gaining over 100 points.
  • The Sensex was up 126.19 points at 36091.21, while the Nifty was up 40.70 points at 11068.40. The market breadth was narrow as 385 shares advanced, against a decline of 216 shares, while 122 shares are unchanged.
  • Larsen & Toubro, SBI, and HPCL gained the most on both indices, while NTPC and Infosys have lost the most.

Global Markets:-

  • Asian markets are mixed today ,the Honk Kong Hnag Seng is down 0.09%, the Shanghai Composite fell by 1.11% while the ASX200 is trading higher by 0.80%.
  • European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.15%, while the FTSE 100 led the DAX lower. They fell 0.72% and 0.06% respectively.
  • S. stocks finished marginally higher on Wednesday as indexes gave up early gains after the Federal Reserve said it sees inflation rising this year, signaling it remains on track to boost interest rates again in March. The Dow Jones Industrial Average rose 73.74 points, or 0.28 percent, to 26,150.63, the S&P 500 gained 1.47 points, or 0.05 percent, to 2,823.9 and the Nasdaq Composite added 9.00 points, or 0.12 percent, to 7,411.48.
  • The dollar index, which measures the greenback against a basket of six major rivals, ended 0.03% lower overnight, and was last trading down 0.05%.
  • At the conclusion of its two-day policy meet, the Federal Reserve held main rates in a range between 1.25% and 1.50%, but its economic outlook hinted at possibilities of a rate hike as soon as in March.
  • The central bank said it expected inflation on a 12-month basis to “move up this year and to stabilize” around the 2% annual target, adding, economic conditions are expected to evolve in a manner that will warrant “further gradual” rate increases.
  • The ADP Research Institute said yesterday that U.S. private employers added 234,000 workers in January, more than the 185,000 forecasted by analysts poll.