Sep 19 2018

Rupee rises on account of RBI intervention and rumoured opening of Oil window

Financial Market Overview

19th September, 2018

Evening Coffee:-

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee posted its largest single-session gain in almost four months against the dollar, boosted by expectations that the federal government may announce measures to stem further depreciation in the currency.
  • Likely intervention from the central bank also helped offset potential losses from importers’ greenback demand and possible equity-related outflows through foreign lenders.
  • The rupee ended at 72.37 to a dollar against a record-low close of 72.98 yesterday. The session marked rupee’s largest single-day gain since May 25.

 

Indian Equities:-

  • Indian shares gave up early gains to close lower on Wednesday, declining for a third straight session to their lowest close since late July, dragged by financials such as HDFC Bank Ltd and Housing Development Finance Corp as the rupee hovering near its record low spooked investors.
  • The broader NSE index fell 0.39 percent to 11,234.35, while the benchmark BSE index declined 0.45 percent to 37,121.22.

 

Global Markets:-

  • European markets are trading mixed today. The France’s CAC40 is trading higher by 0.15% followed by the Germany’s DAX at 0.15% and the London’s FTSE100 at 0.12%. The Eurozone’s Euro STOXX50 is trading lower by 0.19% and the SMI is off by 0.07% .
  • British consumer prices in August rose by 2.7% compared with a year earlier, the Office for National Statistics said on Wednesday.
  • The dollar index that came off its two-month lows to end 0.1% higher overnight was also last trading almost little changed. Markets now await the Federal Reserve’s monetary policy review next week.
  • The benchmark Brent crude oil was last trading little changed at $78.99 per barrel despite concerns over supply shortfall after U.S. sanctions against Iran kick in. It rose as much as 2.2% overnight to $79.73 amid reports that Saudi Arabia was comfortable with oil prices above $80 per barrel.