Mar 14 2019

Rupee Surges To 7-Month High On Foreign Fund Inflows

Financial Market Overview

14th March, 2019

Evening Coffee

MARKETS AT CLOSE:-                                    

Indian Rupee:-

  • The Indian rupee jumped to a seven-month high against the dollar, as foreign fund inflows into local markets erased early losses from the central bank’s decision to conduct foreign exchange swaps to infuse rupee liquidity.
  • The rupee settled at 69.35 to a dollar, its highest close since Aug. 10, 2018 and against 69.54 at previous close. The currency, which rose for a fourth session today, opened lower at 69.67 and extended losses to 69.75, before rising to the day’s high of 69.25, just shy away from breaking its 2019-high of 69.23. However, dollar purchases by at least one large state-run bank and a private lender, apparently on behalf of the Reserve Bank of India, limited further gains.
  • Foreign investors net bought $317.86 million of Indian shares yesterday, data from National Securities Depository Ltd. showed.

Indian Equities:-

  • Benchmark indices ended flat in choppy session on Thursday. At the close, the Sensex was up 2.72 points at 37754.89, while Nifty was up 1.60 points at 11343.30. About 1216 shares have advanced, 1468 shares declined, and 148 shares are unchanged. Nifty Bank has crossed 29,000 for the first time today, but ended off day’s high.
  • NTPC was the top gainer on the Nifty followed by IndusInd Bank, Yes Bank, Sun Pharma and Coal India, while Power Grid Corp lost 3 percent, followed by HCL Tech, Hero Motocorp, UltraTech Cement and Tata Motors.

Global Markets:-

  • European markets are mixed today. The FTSE 100 is up 0.47% while the CAC 40 gains 0.34%. The DAX is off 0.09%.
  • World equity markets advanced broadly on Wednesday after U.S. data again showed risk-friendly low inflation, which weakened the dollar, while Boeing shares gained even as the United States said it would ground the company’s 737 MAX aircraft. On Wall Street, the Dow Jones Industrial Average rose 148.23 points, or 0.58 percent, to 25,702.89. The S&P 500 gained 19.4 points, or 0.69 percent, to 2,810.92 and the Nasdaq Composite added 52.37 points, or 0.69 percent, to 7,643.41. Shares in Europe rose on investor optimism that British lawmakers would reject leaving the European Union without a deal. A late night vote in Parliament ruled out a potentially disorderly ‘no-deal’ Brexit under any circumstances.
  • The German economy had a subdued start to 2019 and probably grew moderately in the first quarter, the Economy Ministry said on Thursday, warning that the industrial sector was likely to remain weak due to sluggish demand from abroad. The economy has got into turbulent waters due to higher risks and uncertainties in the external environment.
  • Growth in China’s industrial output fell to a 17-year low in the first two months of the year and the jobless rate rose, pointing to further weakness in the world’s second-biggest economy that is likely to trigger more support measures from Beijing. But a mixed bag of major data on Thursday also showed property investment was picking up, while overall retail sales were sluggish but steady, suggesting the economy is not in the midst of a sharper slowdown.