Dec 06 2017

Rupee stays lower; India’s MPC keeps rate unchanged as expected

Financial Market Overview

06th December, 2017

Noon Update:-                                                                                  

MARKETS AT Noon:-

Rupee:-

  • The Indian rupee remained lower against the dollar in afternoon trading, as weakness in local shares raised concerns about capital outflows.
  • The rupee was last seen at 64.49 to a dollar, against 64.38 at close in the previous session. The currency has remained in a narrow ten-paisa band so far. Other Asian currencies traded mixed against the dollar.
  • India’s Monetary Policy Committee today held interest rates steady as expected, as economic growth gathered pace and inflation quickened to a seven-month high.
  • The Reserve Bank of India’s repurchase rate was held at 6%, the MPC said in a statement. The six-member rate-setting panel had cut the rate by 25 basis points in August. The MPC maintained its ‘neutral’ policy stance, but raised its inflation forecast for the second half of the year and retained its growth projection.

Indian Equities:-

  • The Indian market is trading below the record high tested in the month of November on the back of selling pressure.
  • The 30-share BSE Sensex was down 112.15 points at 32,690.29 and the 50-share NSE Nifty fell 47.35 points to 10,070.90.
  • About two shares declined for every share rising on the BSE.

Global Markets:-

  • Asian markets finished broadly lower today with shares in Hong Kong leading the region. The Hang Seng is down 2.14% while Japan’s Nikkei 225 is off 1.97% and China’s Shanghai Composite is lower by 0.29%.
  • European markets are lower today. The Germany’s DAX is down 1.04% while the France CAC40 off by 0.85% and the London’s FTSE fell 0.24%.