Dec 28 2017

Rupee turned lower on Fiscal Deficit worries

Financial Market Overview

28th December, 2017

Morning Coffee:-                                                                                  



  • Rupee lower, after opening unchanged, as fiscal concerns overshadow broad-based dollar weakness. Pair USDINR  now at 64.23 against 64.15 previous close.
  • Higher-than-expected additional borrowing for current fiscal year, announced late yesterday, raises fears of India missing fiscal deficit target.
  • India will borrow an additional 500 billion rupees ($7.79 billion) this fiscal year ending March, the government said on Wednesday, a higher-than-expected borrowing that could breach the fiscal deficit target for the first time in four years. Analysts said the fiscal deficit could now rise to 3.5 percent of gross domestic product, against Finance Minister Arun Jaitley’s stated target of 3.2 percent.
  • Pair to tip in range between 64.10-64.35 today.

Indian Equities:-

  • Equity benchmarks rebounded with mild gains amid volatility on Thursday morning, ahead of expiry of December futures and options contracts.
  • The 30-share BSE Sensex was up 51.96 points at 33,963.77 and the 50-share NSE Nifty gained 21 points at 10,511.80.
  • Hindalco Industries, Vedanta, Aurobindo Pharma, BPCL, Lupin, HUL, Tata Steel, Coal India and Dr Reddy’s Labs were early gainers.

Global Markets:-

  • Asian markets are higher today . The Hang Seng is up 0.59% . The Shanghai Composite rose 0.48% and ASX200 is trading higher  by 0.12%.
  • S. stocks eked out a slight gain on Wednesday, as advances in some major technology stocks offset losses in energy and helped keep major indexes just above the unchanged mark. The Dow Jones Industrial Average rose 28.09 points, or 0.11 percent, to 24,774.3, the S&P 500 gained 2.12 points, or 0.08 percent, to 2,682.62 and the Nasdaq Composite added 3.09 points, or 0.04 percent, to 6,939.34.
  • European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.37% and the CAC 40 rose 0.08%. The DAX lost 0.02%.
  • The dollar index, which measures the greenback against a basket of six major rivals, slipped 0.2% overnight tracking a decline in U.S. 10-year bond yields. The U.S. 10-year yield ended lower at 2.41% yesterday as investors reshuffled their portfolios ahead of the year-end.
  • The Conference Board said yesterday its measure of U.S. consumer confidence fell in December after having reached its highest level in 17 years in November, indicating households could be waiting to see the impact of the reformed U.S. tax code on their lives, reports suggested.  The index was last down 0.10%.