Jan 02 2018

Rupee turned higher on broad Dollar weakness; India’s factory activity expands at fastest pace in five years

Financial Market Overview

02nd January, 2018

Noon Update:-                                                                                  



  • Indian rupee turned higher against the dollar in afternoon trade on broad Dollar weakness.
  • The rupee was ast seen at 63.5175 to a dollar , the currency has moved between 63.55, and the day’s low of 63.76. Most other Asian currencies were trading higher against the greenback.
  • India’s factory activity expanded at the fastest pace in five years in December, a private sector survey showed on Tuesday, buoyed by a rise in output and new orders, which allowed firms to raise prices.
  • The Nikkei Manufacturing Purchasing Managers’ Index , compiled by IHS Markit, rose to 54.7 in December from November’s 52.6, marking its fifth straight month above the 50 level that separates expansion from contraction.

Indian Equities:-

  • Benchmark indices were mildly lower but the broader markets extended losses in afternoon.
  • The 30-share BSE Sensex was down 78.23 points at 33,74.52 and the 50-share NSE Nifty declined 16.70 points to 10,418.80 while the Nifty Midcap was down 1 percent.
  • About two shares declined for every share rising on the BSE.

Global Markets:-

  • European markets are lower today with shares in Germany off the most. The DAX is down 0.74% while France’s CAC 40 is off 0.44% and London’s FTSE 100 is lower by 0.34%..
  • Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 1.99% and the Shanghai Composite rose 1.24%. The Nikkei 225 lost 0.08%.
  • The dollar index, which measures the greenback against a basket of six major rivals, was last trading down 0.03%. The index ended down half a percent on Dec. 29, closing near the day’s low of 92.12 and also at the lowest level since September, as investors nursed doubts about the U.S. economy’s ability to pick up following the recent tax reforms.
  • Traders now await the Federal Reserve’s December meeting minutes, due tomorrow. The U.S. employment report for December is also expected this week.
  • Activity in the UK manufacturing sector slowed slightly in the last month of the year, but continued to expand at a solid pace, according to survey data released on Tuesday.
  • Research group IHS Markit said that its UK manufacturing purchasing managers’ index declined to 56.3 in December from 58.2 in November, which was a 51-month high. Economists had forecast a reading of 58.0.