Jan 16 2018

Rupee slips as trade gap widens to multi year high

Financial Market Overview

16th January, 2018

Morning Coffee:-                                                                                  



  • Indian rupee fell against the dollar in early trade, as the nation’s trade deficit widened to a more-than-three-year high, while a jump in global crude oil prices also weighed on sentiment. The rupee was last seen  at 63.68 to a dollar against 63.49 at previous close. Most Asian currencies were trading mixed against the greenback.
  • India’s trade deficit in December was at $14.88 billion, the highest since November 2014 and wider than November’s $13.83 billion, government data showed yesterday. The gap was at $10.55 billion in the same month a year earlier.  Merchandise exports rose 12.36% on year to $27.03 billion in December, the highest since October and the second straight month of annual gain. Imports rose 21.12% on year to $41.91 billion in December, the highest level since November 2014.
  • Pair to tip in range between 63.50-63.78 today.

Indian Equities:-

  • Equity benchmarks have given up all the gains and have turned negative. The Nifty has breached 10,750. The Sensex is down 50.37 points or 0.14% at 34793.14, and the Nifty down 29.20 points or 0.27% at 10712.30.
  • TCS, Wipro, and HCL Tech are the top gainers, while BHEL, Coal India, and Tata Power have lost the most.

Global Markets:-

  • Asian markets are mixed today . The Hang Seng is up 1.32% . The ASX200 fell 0.36% and Shanghai Composite is trading higher by 0.30%.
  • S. financial markets were shut yesterday for Martin Luther King Jr. Day.
  • European markets finished lower yesterday with shares in Germany leading the region. The DAX is down 0.34% while France’s CAC 40 is off 0.13% and London’s FTSE 100 is lower by 0.12%.
  • The dollar index, which measures the greenback against a basket of six major rivals, fell to a three-year low tracking gains in the euro amid expectation that the European Central Bank will soon tighten its monetary policy. The index ended at 90.97 on Jan. 12. It was last trading 0.6% down at 90.45.
  • The euro advanced nearly 3% since Jan. 11, on upbeat economic outlook and after the ECB minutes showed the authority could change its guidance in 2018 if the euro-zone economy continued to expand, implying that policymakers may soon start to trim its 2.55 trillion-euro bond purchase scheme.
  • Comments by the Estonian central bank chief and ECB rate-setter Ardo Hansson underpinned these expectations yesterday, stating that the authority may start unwinding bond-buying scheme in one step after September if the economy and inflation develop as per expectation.