May 15 2018

Rupee slips on elevated Crude oil prices

Financial Market Overview

15th May, 2018

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee fell against the dollar in afternoon trade as elevated crude oil prices increased greenback demand, outweighing gains from Karnataka state election results that showed Prime Minister Narendra Modi’s Bharatiya Janata Party leading the race. However, greenback sales by state-run lenders, apparently on behalf of the central bank, also limited further losses.
  • The rupee was last seen at 67.69 to a dollar, against 67.51 at close yesterday. It fell to the day’s low of 67.80 in early trade before rising to the day’s high of 67.46, as at least two state-run banks stepped up greenback sales, likely on instruction of the Reserve Bank of India at around 67.68 levels and tracking vote count trends.

Indian Equities:-

  • Benchmark indices are off their day’s high. The BJP is likely to emerge as the single largest party in the Karnataka Assembly as it leads in 105 constituencies but is slightly away from its half-way mark.
  • The 30-share BSE Sensex was up 162.08 points at 35,718.79 and the 50-share NSE Nifty gained 46.90 points at 10,853.50 while the Nifty Midcap index turned lower, falling 0.3 percent.

Global Markets:-

  • Asian markets finished mixed today. The Hong Kong’s Hang Seng fell 1.10% while the Shanghai Composite gains 0.57%.
  • European markets are mixed. The CAC 40 is higher by 0.03%, while Germany’s DAX is off 0.17%. Shares in London is showing mild gains with the FTSE 100 at 7,714.61 up 0.04%.
  • The benchmark Brent crude oil prices was at $78.49 per barrel, hovering near its highest level since November 2014, helped by ongoing production cuts by OPEC and looming U.S. sanctions against Iran, a major oil producer.
  • Vote counting for elections held over the weekend in Karnataka are currently underway. The results are being closely watched to assess Prime Minister Narendra Modi’s popularity in the lead up to the national elections, likely next year.
  • Latest trends show Modi’s BJP leading in 105 seats, falling short of the halfway mark and the Indian National Congress leading in around 70 seats, according the Election Commission data. BJP needs 112 seats to win by majority in the assembly of 222 seats.