Financial Market Overview
10th October, 2018
- The Indian rupee stayed higher against the dollar in afternoon trade, on greenback sales by a few exporters and foreign banks while domestic sentiment improved on hopes that policymakers may consider tapping non-resident Indians to boost dollar inflows.
- The rupee changed hands at 74.16 to a dollar against a record-close of 74.39 yesterday. The currency rose to as high as 74.06 so far today.
- India’s finance ministry and the Reserve Bank of India are discussing plans to raise money from non-resident Indians and an announcement on the same may come as early as this month. Last week, a finance ministry official was cited as saying India is considering launching a special deposit scheme for overseas Indians to spur dollar inflows.
- Benchmark indices continue to trade higher on Wednesday with gains in auto, bank, infra stocks.
- The BSE Sensex was up 1.21% at 34713.76 and NSE index was up 1.32% at 10437.30.
- Asian markets finished higher today with shares in China leading the region. The Shanghai Composite is up 0.18% while Hong Kong’s Hang Seng is up 0.16% and Japan’s Nikkei 225 is up 0.16%.
- European markets are lower today with shares in London off the most. The FTSE 100 is down 5.22% while Germany’s DAX is off 0.24% and France’s CAA 40 is lower by 0.50%.
- The benchmark Brent crude oil contract was trading off 0.28% at $84.76 per barrel after the International Monetary Fund downgraded its global economic growth forecasts for 2018 and 2019, leading to fears that a slowdown could temper demand for oil.
- The dollar index was last trading little changed, after a 0.1% drop overnight, following U.S. President Donald Trump’s criticism of the Federal Reserve’s decision to hike interest rates.
- The 10-year U.S. yield also edged lower to 3.21%. Yields had risen to multi-year highs recently, after hawkish comments from Fed policymakers and upbeat U.S. economic data raised bets of faster pace of interest rate hikes.