Feb 05 2019

Rupee Snaps 2-Day Fall As Shares Rise

Financial Market Overview

5th February, 2019

Evening Coffee

MARKETS AT CLOSE:-                                    

Indian Rupee:-

  • The Indian rupee rose for the first time in three sessions against the dollar, tracking a rise in local shares that gained for a fourth session today, boosting hopes of foreign fund inflows.
  • The rupee ended at 71.56 to a dollar, against 71.80 at previous close. The local unit opened at 71.70 before falling to the day’s low of 71.81 in early trade. Rupee is helped by some hopes of inflows in local equities, tracking strength in the global equity market amid improved appetite, but uptick in oil limited rupee’s appreciation Also, there is lot of uncertainty related to what action can be taken in the monetary policy this week because although the inflation remains under control.

Indian Equities:-

  • Equities have ended the session on a flat note, with the Nifty closing above 10,900-mark. Barring automobiles, weakness was visible among all sectoral indices, with pain visible among energy, consumption, infrastructure, and metals space.  The midcap index fell nearly a percent.
  • At the close of market hours, the Sensex was up 34.07 points or 0.09% at 36616.81, and the Nifty up 22.10 points or 0.20% at 10934.40. The market breadth was negative as 852 shares advanced, against a decline of 1679 shares, while 146 shares were unchanged

 Global Markets:-

  • European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.22% while Germany’s DAX is up 1.14% and France’s CAC 40 is up 0.94%.
  • Wall Street gained on Monday, with all three major indexes closing near session highs as sustained optimism on the prospects for U.S.-China trade relations propelled technology shares. S&P 500 industrial stocks, another trade-sensitive group, posted the second-highest percentage gain among sectors, advancing 1.3 percent. The Dow Jones Industrial Average rose 175.48 points, or 0.7 percent, to 25,239.37, the S&P 500 gained 18.34 points, or 0.68 percent, to 2,724.87 and the Nasdaq Composite added 83.67 points, or 1.15 percent, to 7,347.54.
  • Britain’s economy risks stalling or contracting as Brexit nears and the global economy slows, with firms in the dominant services sector reporting job cuts for the first time in six years and falling orders, a survey showed on Tuesday. A closely watched gauge of the world’s fifth-biggest economy, the IHS Markit/CIPS UK Services Purchasing Managers’ Index, fell to 50.1 in January from 51.2 in December its lowest level since July 2016 and barely above the 50 mark that separates growth from contraction.
  • Activity in the U.K. service sector slowed last month, bringing the economy near to stagnation, as heightened uncertainty over Britain’s impending departure from the European Union made companies more risk-averse.
  • Euro zone businesses started the year by expanding at their weakest rate since mid-2013 as a manufacturing slowdown spread to services, with demand declining for the first in over four years. IHS Markit’s Euro Zone Composite Final Purchasing Managers’ Index (PMI), considered a good measure of overall economic health, dipped to 51.0 from December’s 51.1, its lowest reading since July 2013.