Oct 16 2018

Rupee Rises On Lower Oil prices and Likely Dollar Inflows

Financial Market Overview

16th October, 2018

Noon update

Indian Rupee:-

  • The Indian rupee came off the day’s low to trade higher against the dollar in afternoon trade, as oil prices reversed gains to trade lower, while likely greenback inflows in domestic bonds also helped.
  • The rupee changed hands at 73.66 to a dollar against 73.83 at close yesterday. The currency opened higher at 73.8050 helped by softer U.S. retail sales number, before falling to the day’s low of 73.95 on importers’ demand for the greenback.
  • Fall in crude oil prices and likely foreign investors buying domestic bonds in decent quantum helped the rupee come off day’s low.

Indian Equities:-

  • Indian shares rose on Tuesday amid positive global markets, with all eyes on market heavyweight Infosys Ltd which is widely expected to report a higher profit later in the day.
  • The broader NSE index was up 0.67% at 10,583.30 and the benchmark BSE index was trading 0.79% higher at 35,141.85.
  • Indian markets are on track for their third consecutive session of gains with IndusInd Bank as the top percentage gainer after it reported a 4.6% jump in September quarter profit. Infosys shares rose over 1% amid anticipation of the company posting strong results for the September quarter.

Global Markets:-

  • Asian markets are trading lower. The Hang Seng falls 0.14% while Shanghai Composite is down 0.85%.
  • European markets are mixed today. The CAC 40 is up 0.19% while the DAX gains 0.30%. The FTSE 100 is off 8.06%.
  • The benchmark Brent crude oil contract was last trading down 0.73% at 80.19 per barrel, on expectation of rise in U.S. inventories due later today. Crude oil prices rose as much as half-a-percent in early Asia trade amid slowing exports of Iran oil before the U.S. sanctions against world’s third-largest oil exporter starting from Nov. 4. Geopolitical tensions between the U.S. and Saudi Arabia linked to a missing journalist also added to gains in global oil prices.
  • The dollar index was trading little changed after an overnight slump of near 0.2% as U.S retail sales data came in weaker than expected, which tempered outlook for U.S. economic growth. Retail sales rose 0.1% on month in September, lagging the 0.6% increase expected.
  • China’s yuan led the decline among Asian peers today, weighed by slowdown in September producer price index that rose 3.6% against 4.1% increase in previous month. However, September consumer inflation in Asia’s largest economy rose 2.5% against 2.3% in August.