Nov 26 2018

Rupee trims gains on oil rebound, importers’ bids

Financial Market Overview

26th November, 2018

Noon update

Indian Rupee:-

  • The Indian rupee trimmed early gains to trade slightly higher against the dollar in afternoon trade, as crude oil prices rebounded from early lows to jump more than 2%, while month-end greenback demand from importers also weighed on the unit.
  • The rupee changed hands at 70.61 to a dollar, against 70.67 at close on Nov. 22. It opened higher at 70.46 and extended gains to 70.31, highest since Aug. 29, before briefly turning lower to 70.73.

Indian Equities:-

  • Indian shares are trading higher, with losses in IT outweighed by gains in financial stocks though investors stayed away from big bets amid caution ahead of key macro events later in the week.
  • There was some cautiousness ahead of the release of the gross domestic product data for the September quarter and expiry of futures and options contract later this week.
  • The broader NSE Nifty was up 0.2% at 10,547.95, while the benchmark BSE Sensex rose 0.3% to 35,085.17.

 Global Markets:-

  • Asian shares are trading mixed today. The Hang Seng gained 1.59% while the Shanghai Composite was down 0.14%.
  • European shares are trading higher today. The London’s FTSE 100 gained 0.88%, France’s CAC gained 0.95% while Germany’s DAX was 1.04% higher and Spain’s IBEX35 was 1.14% higher.
  • The benchmark Brent crude oil prices rebounded from more than 6% plunge on Nov. 23, and was last trading 2.19% higher back to above $60 per barrel.
  • The dollar index was off 0.1% after rising 0.2% on Friday amid rising safe-haven bets increased demand for the greenback.
  • Investors await comments from Federal Reserve officials, including chair Jerome Powell due this week, ahead of minutes of the Fed’s latest meeting held earlier this month due on Nov. 30 to gauge if the authority remains on track for a December rate hike and the pace of rate hikes next year.
  • Investors also await a key meeting between the U.S. President Donald Trump and China’s Xi Jinping to ease trade tensions between the two economies at the G20 summit later in the week.