Financial Market Overview
17th January, 2019
- The Indian rupee rebounded from early losses to rise for the first time in five sessions against the dollar, as state-run and private banks sold the greenback likely on behalf of exporters. The rupee ended at 71.05 to a dollar, against 71.24 at yesterday’s close. It opened at 71.15 and traded in a 70.97-71.40 band today. The unit posted its biggest single-session gain since Jan. 4
- There was a strong resistance around 71.35-71.40 levels, from where the reversal happened as all the negatives have already gotten discounted in the unit. The fiscal noise and oil-related worry is there for some time now and until there is no concrete development on the fiscal front, we don’t see rupee depreciating beyond 71.40. Developments on U.S.-China trade talks will impact move in coming days.
- Benchmark indices remained volatile during the day but ended on the positive side with Nifty finished above 10,900 mark.
- The Sensex was up 52.79 points at 36374.08, while Nifty was up 14.90 points at 10,905.20. About 1046 shares have advanced, 1496 shares declined, and 173 shares are unchanged.
- HCL Tech, Axis Bank, HDFC, TCS and M&M were the top gainers on the Sensex, while top losers were Sun Pharma, Yes Bank, SBI, Bajaj Finance and HUL.
- Among the sector pharma and PSU bank stocks were under pressure as indices lost 1.3 percent, while some buying was seen in the IT stocks.
- European markets are lower today with shares in London off the most. The FTSE 100 is down 0.53% while France’s CAC 40 is off 0.40% and Germany’s DAX is lower by 0.35%.
- Euro zone consumer prices were flat in December, while the annual rate of inflation fell to 1.6% from 1.9% in November, according to a revised estimate released on Thursday. The monthly reading was revised up from an initial estimate of a 0.2% drop in prices, while the annual reading was unchanged. Core inflation, which excludes energy, food, alcohol and tobacco prices, was confirmed at an annual rate of 1.0%.
- Wall Street’s major indexes hit one-month highs on Wednesday as upbeat earnings from Bank of America Corp and Goldman Sachs Group Inc boosted investor sentiment. The Dow Jones Industrial Average rose 137.64 points, or 0.57 percent, to 24,203.23, the S&P 500 gained 5.55 points, or 0.21 percent, to 2,615.85 and the Nasdaq Composite added 10.86 points, or 0.15 percent, to 7,034.69.
- Lenders in Britain expect demand for mortgages and credit card lending to fall by the greatest extent in several years, a Bank of England survey showed on Thursday, adding to signs of an economic slowdown before Brexit. The Bank of England’s gauge of demand for mortgage lending over the next three months fell to -17.5 in the fourth quarter of 2018 from 0.2 in the third quarter, its lowest level since the end of 2010.
- Labor markets tightened across the United States as businesses struggled to find workers at any skill level and wages generally grew moderately, the Federal Reserve said on Wednesday in its latest report on the economy.