Rupee Snaps 2-Day Gains On Reversal In Crude Oil Prices

Rupee Snaps 2-Day Gains On Reversal In Crude Oil Prices

13 Jun 2019 05:27 PM

Financial Market Overview

13th June, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee fell for the first time in three sessions due to a bounce-back in crude oil prices that prompted demand for the greenback from oil importers. The rupee ended at 69.51 to the dollar, against 69.34 at the previous close. The currency opened at 69.35 and briefly rose to the day’s high of 69.31 before easing to the day’s low of 69.57. Spike in oil prices led to the break of a strong technical resistance at around 69.40 on the pair today as state-run lenders were buying dollars. Weak appetite in the broad market too weighed on local currency.
  • On the U.S. policy outlook, odds of a Fed easing increased after softer-than-expected U.S. consumer inflation data. U.S. retail inflation rose 1.8% year-on-year in May, lower than the 1.9% expected by economists. The more closely-watched core consumer price index was up 2%, 0.1% slower than expected.

Indian Equities

  • Benchmark indices ended mixed but off day's low in the volatile session on June 13 with Nifty holds above 11,900 level. At close, the Sensex was down 15.45 points at 39,741.36, while Nifty was up 7.80 points at 11,914.00. About 916 shares have advanced, 1590 shares declined, and 155 shares are unchanged. Indiabulls Housing, Zee Entertainment, BPCL, Grasim Industries and Power Grid were among major gainers on the Nifty, while losers were Yes Bank, IndusInd Bank, Infosys, IOC and UPL. Among the sectors, selling was seen in the IT, metal, pharma, PSU bank and auto

Global Markets

  • European markets are higher today with shares in Germany leading the region. The DAX is up 0.43% while London's FTSE 100 is up 0.21% and France's CAC 40 is up 0.02%.
  • Wall Street ended down slightly on Wednesday, with bank stocks declining as prospects of a U.S. interest rate cut rose and energy shares tumbling along with oil prices. The S&P 500 energy index slid 1.4%, the most among the 11 S&P sectors, as demand worries drove U.S. crude prices down 4%. The day's losses made energy the worst-performing S&P 500 sector for the year-to-date. The Dow Jones Industrial Average fell 43.68 points, or 0.17%, to 26,004.83, the S&P 500 lost 5.88 points, or 0.20%, to 2,879.84 and the Nasdaq Composite dropped 29.85 points, or 0.38%, to 7,792.72.
  • Washington posted a $208 billion budget deficit in May as a modest increase in revenues failed to make up for higher spending on the military and social welfare programs like Medicare, according to data released on Wednesday by the Treasury Department. Government spending rose to $440 billion, up 21% from May of 2018. Receipts increased to $232 billion, up 7% from the same month last year.
  • The Los Angeles and Long Beach port complex - the No. 1 hub for U.S. ocean trade with China - processed 6.3% fewer inbound cargo containers in May, signaling that the escalating U.S.-China trade war is roiling business activity. Exports from the California seaport complex, the nation's busiest, fell 7.4% year-on-year. U.S. companies ranging from retailers to manufacturers stockpiled goods before Washington and Beijing began slapping tariffs on imports last year.
  • Britain's Brexit-battered housing market steadied in May and a measure of prices improved as the delay in the country's European Union exit gave some encouragement to buyers.


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