Nov 27 2018

Rupee Rises On Exporters’ Dollar Sales & Muted Oil Prices

Financial Market Overview

27th November, 2018

Evening Coffee                                                                        

Indian Rupee:-

  • The Indian rupee rose against the dollar, helped by exporters’ greenback sales while Brent crude oil prices were largely steady, hovering around $60 per barrel. U.S. President Donald Trump’s recent comments on raising trade tariffs on China limited further gains, dealers said.
  • The rupee settled at 70.76 to a dollar against 70.87 at previous close. It opened lower and extended losses to 71.03 before rising to the day’s high of 70.71. Most Asian currencies ended little changed to lower against the greenback.

 Indian Equities:-

  • Bulls have managed to maintain a good momentum this week, ahead of expiry of F&O contracts on Thursday. A rally in technology names as well as financials, especially PSU banks, helped the market close with gains of half a percent.
  • At the close of market hours, the Sensex ended up 159.06 points or 0.45% at 35513.14, while the Nifty was higher by 57.00 points or 0.54% at 10685.60. The market breadth was narrow as 1238 shares advanced, against a decline of 1320 shares, while 161 shares were unchanged. Infosys, TCS, and BPCL were the top gainers, while Sun Pharma and Hero MotoCorp lost the most.

 Global Markets:-

  • Euro zone shares would suffer more than their U.S. counterparts in the event of a full-blown global trade war but emerging markets would likely take an even bigger hit, research published by the European Central Bank suggested on Tuesday. European markets are lower today with shares in London off the most. The FTSE 100 is down 0.28% while France’s CAC 40 is off 0.19% and Germany’s DAX is lower by 0.16%.
  • U.S. equity prices would fall by about 10 percent and U.S. corporate bond spreads would increase by up to 100 basis points in the first year,” in an all-out trade war, the ECB said, describing that scenario as 25 percent import tariffs imposed by all countries on each other.
  • Prime Minister Theresa May began a tour of the United Kingdom to drum up support for her Brexit divorce deal with the European Union, while her deputy said on Tuesday parliament might reject it if asked to vote on it now.
  • Profit growth at China’s industrial firms cooled for a sixth straight month in October as factory prices and the pace of sales increases softened amid mounting uncertainties stemming from the U.S.-China trade war. China and the United States have slapped tariffs on billions of dollars of each other’s goods, hurting manufacturing and casting a shadow on the outlook for global growth. Industrial profits rose 3.6 percent in October from a year earlier to 548 billion yuan ($78.92 billion), a 7-month low and a slowing from September’s 4.1 percent gain