Jul 13 2018

Rupee posted its best week in a month

Weekly Synopsis

13th June, 2018                                                                                  

Markets form 09th July to 13th July 2018:-

Rupee:-

  • Indian rupee posted its biggest weekly gain in more than a month against the dollar, as slump in global crude oil prices outweighed U.S.-China trade conflict concerns, which boosted the dollar. For the week, rupee ended up 0.50% against the greenback. The rupee closes on Friday at 68.52 against the previous weekly close of 68.8725 on July 06th, 2018 to a greenback. It trades in a weekly range between 68.89 to 68.3250 against the greenback.
  • India’s foreign exchange reserves fell to $405.81 billion as of July 6, compared with $406.06 billion a week earlier, the Reserve Bank of India said on Friday.
  • India’s retail inflation rate accelerated to a five-month high of 5.0 percent in June, government data showed on Thursday, driven by higher fuel prices and a depreciating rupee. Analysts poll had a forecast of June’s annual increase in the consumer price index at 5.30 percent, compared with May’s 4.87 percent.
  • India’s industrial output grew 3.2 percent in May from a year earlier, driven by a pick up in capital goods manufacturing, government data showed on Thursday. Economists surveyed had forecast 5.2 percent growth in output compared with a 4.9 percent year-over-year increase in April.

Global Markets:-

  • The greenback was the strongest major currency this week and the dollar index, which tracks the currency against a basket of six major rivals, was up 0.4 percent at 95.142. The euro fell to a nine-day low of $1.1629.
  • Trade conflicts between U.S. and China was renewed earlier this week, after the U.S. published the next $200 billion worth of Chinese imports that may attract tariffs. Last week, the Trump administration had imposed tariffs on $34 billion of Chinese imports, which triggered a similar amount of tariff from China on U.S. products.
  • The U.S. government had a $75 billion budget deficit in June, Treasury Department data released on Thursday showed. That compared to a budget deficit of $90 billion in the same month last year, according to the Treasury’s monthly budget statement. Economists poll had a forecast the Treasury running a $98.2 billion deficit in June.
  • US. consumer prices barely rose in June, but the underlying trend continued to point to a steady buildup of inflation pressures that could keep the Federal Reserve on a path of gradual interest rate increases. The Labour Department said on Thursday its Consumer Price Index edged up 0.1 percent as gasoline price increases moderated and apparel prices fell. The CPI rose 0.2 percent in May.
  • US. producer prices rose in June, according to data released on Wednesday. The Labour Department said its producer price index increased 0.3% last month. In the 12 months through June, the PPI rose 3.4%.
  • The mood among German investors worsened in July, a survey showed on Tuesday. The Mannheim-based ZEW research institute said its monthly survey showed its German economic sentiment fell to a negative 24.7 this month from minus 16.1 in June. That was compared to the consensus forecast for a reading of minus 18.0.
  • The benchmark Brent crude oil contract was last trading off 0.5% at $74.09 a barrel. For the week, Brent crude oil prices have fallen nearly 4% so far.
  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.43% while France’s CAC 40 is up 0.40% and Germany’s DAX is up 0.34%.

Indian Equities:-

  • Indian equity markets were little changed on Friday, but ended higher for a second straight week, as gains in blue-chips such as Infosys Ltd were offset by losses in state-run lenders.
  • The benchmark BSE index, which hit a fresh high in early trade, ended 0.02 percent lower at 36,541.63. The broader NSE index ended 0.04 percent lower at 11,018.90. For the week, the BSE index was up 2.5 percent, while the NSE index has gained 2.3 percent.
  • Public sector lenders took a hit, with the Nifty PSU bank index ending 2.1 percent lower, while Infosys gained 1.8 percent ahead of its results.