Oct 31 2018

Rupee Records 7th Monthly Fall On FPI Outflows

Financial Market Overview

31st October, 2018

Evening Coffee:-                                                                        

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee fell against the dollar for a seventh month in October and logged its largest losing streak in 18 years, hurt by foreign fund outflows from local and other emerging markets on risk aversion amid expectations of more interest rate hikes from the U.S. Federal Reserve.
  • The rupee settled at 73.95 to a dollar, lowest since Oct. 11, against 73.68 at close yesterday. It fell 2% in October, after plunging to a record-low of 74.4850 earlier in the month.

Indian Equities:-

  • A dramatic session ended on a strong note, with the Nifty soaring past 10,380-mark. Investors could have placed positive bets on some commentary by the government in its ongoing spat with the Reserve Bank of India.
  • Additionally, financials received a boost after non-banking financial companies (NBFCs) witnessed a rally. PNB Housing Finance raised over Rs 2,450 crore through commercial papers (CPs) and that led to a positive momentum among such names.
  • At the close of market hours, the Sensex ended up 550.92 points or 1.63% at 34,442.05, while the Nifty was higher by 188.20 points or 1.85% at 10,386.60. The market breadth is positive as 1,593 shares advanced, 946 shares declined, while 1,114 shares were unchanged.

Global Markets:-

  • European markets are sharply higher today with shares in France leading the region. The CAC 40 is up 2.17% while London’s FTSE 100 is up 1.51% and Germany’s DAX is up 1.24%.
  • Stock markets bounced higher on Wednesday, bringing some relief after a brutal October in which equities have suffered one of their worst drops in a decade and spooked investor confidence. U.S. trade tensions, concerns about global growth and higher U.S. interest rates and fears that corporate earnings are peaking have combined to shake financial markets in October, leaving most major markets in negative territory for the year.
  • Euro zone inflation accelerated last month, providing further rationale for the European Central Bank’s decision to dial back stimulus even as growth is slowing more sharply than most had forecast. Consumer price growth in the 19 countries sharing the euro picked up to 2.2 percent in October from 2.1 percent last month, Eurostat said in a preliminary report, holding above the ECB’s target of just below 2 percent for the fifth month running.
  • Japan’s central bank chief on Wednesday ruled out a near-term interest rate hike amid risks from global trade disputes, but also raised a firm warning about vulnerabilities in the financial system from years of loose monetary policy.
  • U.S. crude futures rose 0.92 percent to $66.79 per barrel after dropping to $65.33 on Tuesday, the lowest since mid-August.Brent crude gained 1.11 percent to $76.75 after a decline of 1.8 percent on Tuesday.