Oct 11 2018

Rupee rose for 2nd day on govt official comments; US. Inflation data awaited

Financial Market Overview

11th October, 2018

Evening Coffee:-                                                                                  

MARKETS AT CLOSE:-

Rupee:-

  • Indian rupee came off record intraday lows to rise for a second day against the dollar, as an official indicated the government can take more steps to halt the local currency’s slump and limit the country’s widening current account deficit, if needed.
  • The rupee closed at 74.12 to a dollar, against 74.20 yesterday. It fell to a lifetime low of 74.4850 intraday but managed a sharp recovery .
  • India is finalizing a second list of items for import curbs and may announce it soon, another finance ministry official said, even as New Delhi moved to reassure markets that it will take more steps, as needed, to stem the fall in rupee and limit its widening CAD.

Indian Equities:-

  • Indian shares plunged more than 2 pct on Thursday, at their lowest closing levels since April, mirroring the markets rout across the globe amid rising trade concerns and expectation of rate hikes in the United States.
  • The benchmark BSE index closed down 2.19 percent at 34,001.15. The broader NSE index ended 2.16 percent lower at 10,234.65.

Global Markets:-

  • European markets are shaprly lower today. The SMI is down 2.53%, the London’s FTSE100 is off -1.66%, the France’s CAC40 fell 1.54%, the Eurozone’s STOXX50 off 1.27%, the Spain’s IBEX35 is down 1.11% and the Germany’s DAX is trading lower by -1.09%.
  • The dollar index was last trading down 0.4% while the U.S. 10-year Treasury yield eased to trade lower at 3.1762% after rising to seven-year highs earlier this week. Investors await consumer price data from U.S. due today for further cues.
  • Benchmark Brent crude oil contract was trading off 1.5% at $81.52 per barrel, extending yesterday’s 2.2% loss amid the rout in global stock markets and larger-than-expected build-up in the U.S. crude inventories.