Rupee Stays Higher In Thin Volume Tracking Asian Peers

Rupee Stays Higher In Thin Volume Tracking Asian Peers

16 May 2019 02:21 PM

Financial Market Overview

16th May, 2019

Noon Update

Indian Rupee:-

  • The Indian rupee remained higher against the dollar in thin afternoon trade, tracking marginal gains in most Asian currencies following weak U.S. economic data.
  • The rupee changed hands at 70.13 to a dollar against 70.3350 at the previous close. The local unit opened at 70.27.

Indian Equities:-

  • Big swings can be seen on May 23 when election results will be announced. The Nifty could touch 11,205 levels and go beyond in case of a market-friendly outcome or slip 10-15 percent in case NDA fails to get a majority, suggest a report from a global investment bank.
  • Nifty is trading at 20x 12m forward PE, and UBS thinks that looking beyond the immediate market moves next week, the risk-to-reward ratio is unfavourable for investors.

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.58% and the Hang Seng rose 0.11%. The Nikkei 225 lost 0.59%.
  • European markets are lower today with shares in Germany off the most. The DAX is down 0.36% while France's CAC 40 is off 0.27% and London's FTSE 100 is up by 0.01%.
  • Oil prices pushed higher on Thursday for a third day in a row, as fears of supply disruptions amid heightened tensions in the Middle East overshadowed an unexpected rise in U.S. inventories. Brent crude futures were at $72.18 a barrel, up 0.6%, from their last close. Brent closed up 0.7% on Wednesday.
  • New home prices in China grew at a solid pace in April as Beijing sought to boost economic activity in the face of an escalating trade war with the United States, though potential bubble risks may prompt some cities to tighten policies.
  • The euro was buoyant on Thursday as trade concerns eased on expectations that U.S. President Donald Trump will delay implementing tariffs on imported cars. The president is expected to put off a decision on imposing tariffs on imported cars and parts by up to six months, for now preventing a further increase in transatlantic trade tensions.