Apr 03 2018

Rupee remained higher on bunched-up foreign fund inflows

Financial Market Overview

03rd April, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • Indian rupee extended gains against the dollar in afternoon trade, as bunched-up foreign funds rushed in after a long weekend amid greenback sales by corporates.
  • The rupee was last seen at 65.00 to a dollar, against 65.17 on Mar. 28. Indian financial markets were closed on Mar. 29 and 30 for local holidays, while money markets were shut yesterday on account of banks’ annual closing.
  • Yesterday, India’s central bank allowed banks to spread provisions for mark-to-market losses on bond portfolios in 3Q, 4Q of the previous fiscal year to be spread over four quarters, raising expectations state-run banks may resume debt purchases, also aided sentiments for the local currency.

Indian Equities:-

  • The market remained range-bound ahead of India’s rate-setting Monetary Policy Committee’s two-day policy review meeting starting tomorrow, where the authority is expected to keep key interest rates on hold.
  • The 30-share BSE Sensex is down 30.12 points at 33,225.25 and the 50-share NSE Nifty fell 17.25 points at 10194.55.

Global Markets:-

  • European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.41% while London’s FTSE 100 is off 0.76% and France’s CAC40 is lower by 0.63%.
  • Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.15%, while the Shanghai Composite led the Nikkei 225 lower. They fell 0.84% and 0.45% respectively.
  • The dollar index, which measures the greenback against a basket of six major rivals, gained 0.09% overnight, while 10-year Treasury yields declined to their lowest level in two months. It was last trading off 0.22%.
  • Manufacturing growth in Britain cooled to a one-year low in the first quarter of 2018, according to a survey on Tuesday that suggested the economy remains on a slow but steady course a year ahead of Brexit. The IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) inched up to 55.1 in March from a downwardly revised 55.0 in February, beating the 54.5 consensus in a preliminary poll of economists.
  • Activity in the UK manufacturing sector accelerated last month, according to a closely watched business survey released on Tuesday.
  • Research firm IHS Markit said its manufacturing purchasing managers’ index rose to 55.1 in March, compared to forecasts for a reading of 54.8. The prior month’s reading was 55.0.