Jan 29 2019

Rupee Steady As Investors Await Fed Policy, Budget

Financial Market Overview

29th January, 2019

Evening Coffee                                                                        

Indian Rupee:-

  • The Indian rupee was little changed against the dollar amid thin trade, as most investors stayed on sidelines ahead of the Federal Reserve’s two-day monetary policy meet and the interim budget at home later this week.
  • The rupee ended at 71.11 to a dollar against 71.10 at previous close. The currency opened lower at 71.14 and extended decline to 71.22, before rising to the day’s high of 71.03. Most Asian currencies ended mixed against the greenback.
  • The Brent crude oil dropped almost 3% yesterday to close below $60 per barrel for the first time in two weeks. The selloff came amid an increase in U.S. crude drilling, which pointed to further increase in supplies at a time when there are worries of an economic slowdown.

 Indian Equities:-

  • Benchmark indices has made strong comeback from the lows with Nifty finished just above 10,650 level.
  • At the close of market hours, the Sensex was down 64.20 points at 35592.50, while Nifty was down 9.30 points at 10652.20. About 1144 shares have advanced, 1346 shares declined, and 140 shares are unchanged. Adani Ports, Bharti Infratel, Bajaj Finserv, Cipla and Sun Pharma are the top gainers on the Nifty, while top losers include Eicher Motors, GAIL, Yes Bank, HPCL and L&T.

 Global Markets:-

  • European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.44% while France’s CAC 40 is up 0.57% and Germany’s DAX is up 0.06%.
  • S. stocks ended lower on Monday after warnings from Caterpillar Inc and Nvidia Corp added to concerns about a slowing Chinese economy and tariffs taking a bite out of U.S. corporate profits. The Dow Jones Industrial Average fell 209.65 points, or 0.85 percent, to 24,527.55, the S&P 500 lost 20.93 points, or 0.79 percent, to 2,643.83 and the Nasdaq Composite dropped 79.18 points, or 1.11 percent, to 7,085.69.
  • The U.S. Commerce Department’s Bureau of Economic Analysis (BEA) said on Monday it was delaying the release of advance fourth-quarter gross domestic product and December personal income reports scheduled for this week because of the just-ended five-week partial shutdown of the federal government. The BEA said the publication of December’s trade report, which had been scheduled for next Tuesday.
  • French consumer confidence levels rebounded in January from a slump in the previous month, though they remained well below average as the euro zone’s second-biggest economy grapples with the impact of anti-government protests. The national statistics agency said consumer confidence in January rose to 91 points from 86 in December, which had marked the lowest level since October, 2014.
  • Gold prices steadied on Tuesday in Asia and remained above the $1,300 psychological mark amid renewed China-U.S. tension. Gold Futures traded at $1,304.97 per ounce by on the New York Mercantile Exchange’s Comex division, up 0.2%. Gold prices are now near eight-month highs. The yellow metal derived support from mounting uncertainty surrounding the upcoming Sino-U.S. trade talks after the U.S.