Dec 02 2017

Rupee posted 3rd weekly gain in a row; Indian economic growth rebounds

 Weekly Synopsis


Date:- 02nd December 2017


Markets from 27th November 2017 to 01st December 2017:-


Indian Rupee:-


  • On a weekly basis, the currency rose 0.36%, its third weekly gain in a row since week ended on Nov. 17. The rupee closes on Thursday at 64.4625 against the previous weekly close of 64.6975 on November 24th, 2017 to a greenback. It trades in a weekly range between 64.83 to 64.27 against the greenback. Indian money markets was closed on Friday for a local holiday.


  • India’s foreign exchange reserves rose for a third consecutive week to $400.74 billion as of Nov. 24, from $399.53 billion in the previous week, the central bank said on Friday. The increase was driven by a rise in foreign currency assets to $376.30 billion from $375.09 billion in the previous week, according to data from the Reserve Bank of India. Foreign exchange reserves had hit a record high of $402.51 billion as of the week ended Sep. 15.


  • India’s economy grew 6.3 percent in the three months ending in September from a year earlier, faster than a provisional 5.7 percent in the previous quarter, government data showed on Thursday. Analysts polled had forecast an annual growth of 6.4 percent in the quarter.


  • India reported a fiscal deficit of 5.25 trillion rupees ($81.36 billion) for April-October, or 96.1 percent of the budgeted target for the current fiscal year that ends in March 2018. The deficit was 79.3 percent of the full-year target during the same period a year ago. Net tax receipts in the first seven months of 2017/18 fiscal year were 6.34 trillion rupees, government data showed on Thursday.


Global Market:-


  • The dollar pared gains against a basket of currencies on Friday amid reports that former national security advisor Michael Flynn was “prepared to testify” against President Donald Trump as part of an investigation into Russia’s involved in the presidential election.


  • Flynn is prepared to testify that President Donald Trump directed him to make contact with Russians when he was a presidential candidate, ABC News reported. Earlier Friday, Flynn admitted lying to the FBI over his links to Russia and agreed to share information about a “very senior” official as part of a plea deal. The dollar turned negative on the reports amid a surge in demand for safe-haven currencies such as the yen and Swiss franc. The S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.20% at 92.78 and was last seen at 92.87.


  • US ISM manufacturing PMI for November cooled to 58.2 from 58.7 in October, missing expectations of a reading of 58.4, while construction spending for October rose 1.4%, well above economists’ forecast of 0.5%.


  • The U.S. economy grew faster than initially thought in the third quarter, notching its quickest pace in three years. Gross domestic product expanded at a 3.3 percent annual rate last quarter also boosted by a rebound in government investment, the Commerce Department said in its second GDP estimate on Wednesday.


  • The UK manufacturing sector expanded at a faster rate than expected in November, easing concerns over the economy. Research group IHS Markit reported yesterday that its Purchasing Managers’ Indexfor the UK manufacturing sector, rose to 58.2 in November, its highest level since August 2013. Economists had predicted a reading of 56.5, from October’s rate of 56.6, which was revised up from 56.3.


  • Euro zone inflation rose in November, as the European Central Bank begins to end its purchase buyback program, according to flash data released by Eurostat on Thursday. The European Union’s statistics office said the consumer price index rose at an annual rate of 5%in November, above 1.4% in October.


  • Wall Street fell on Friday, The Dow Jones Industrial Average fell 40.76 points, or 0.17 percent, to 24,231.59, the S&P 500 lost 5.36 points, or 0.20 percent, to 2,642.22 and the Nasdaq Composite dropped 26.39 points, or 0.38 percent, to 6,847.59.


  • European markets finished broadly lower on Friday with shares in Germany leading the region. The DAX is down 1.25% while France’s CAC 40 is off 1.04% and London’s FTSE 100 is lower by 0.36%.


Local Market:-


  • Indian shares fell for a fourth consecutive session on Friday, posting their biggest weekly drop since mid-August, as concerns about the country’s widening fiscal deficit and rising crude prices spooked investors.


  • The broader NSE index closed down 1.02 percent at 10,121.80, and posted a weekly loss of 2.58 percent. The benchmark BSE index ended 0.95 percent lower at 32,832.94, losing 2.51 percent this week.