Sep 26 2018

Rupee turns higher as local Equities rebound; FED meet in focus

Financial Market Overview

26th September, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee turns higher after a flattish open at 72.70 as local stocks open higher, adding to yesterday’s rebound; pair USDINR now at 72.58 against 72.70 previous close.
  • Data released yesterday showed that India’s fiscal deficit for the April-August period stood at 94.7% of the estimate for this financial year. The deficit was 96.1% of the budget aim in the same period last year.
  • We expect the pair to trade in the range between 72.45 to 72.75.

Indian Equities:-

  • It’s a positive start to the market on Wednesday morning, with the Nifty manage to trade above 11,100-mark. The Sensex traded higher by over 200 points.
  • The Sensex is up 222.59 points or 0.61% at 36874.65, while the Nifty is higher by 67.50 points or 0.61% at 11135.00. The market breadth is positive as 432 shares advanced, against a decline of 98 shares, while 27 shares were unchanged.

Global Markets:-

  • Asian equities are trading higher today with shares in Hong Kong leading the region. The Hang Seng is up 1.50%%, the China’s Shanghai Composite gains 1.27% and the Australian’s ASX 200 is higher by 0.13%.
  • European markets finished higher yesterday with shares in London leading the region. The FTSE 100 is up 0.66% while Germany’s DAX is up 0.19% and France’s CAC 40 is up 0.05%.
  • US. stocks were mixed after the close on Tuesday, as gains in the Oil & Gas, Consumer Services and Technology sectors led shares higher while losses in the Utilities, Consumer Goods and Telecoms sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 0.26%, while the S&P 500 index lost 0.13%, and the NASDAQ Composite index climbed 0.18%.
  • The yield on the benchmark 10-year Treasury closed at 3.10% on Wednesday, the highest since mid-May, before a widely expected quarter percentage interest rate increase by the Fed later today. With the Fed’s third rate increase this year well discounted, market participants will focus on the dot-plots and the accompanying statement to gauge whether another rate increase is coming in December.
  • The Chinese yuan led regional currencies lower on Wednesday amid climbing U.S. yields, falling 0.2% to 6.8735. The Indonesian rupiah and Thai baht edged lower by 0.1%.
  • Confidence among U.S consumers rose to an 18-year high in September, paving the way for a robust holiday season. The Conference Board’s index of consumer confidence rose to 138.4, compared to a reading of 132.2 forecast by economists, according to data released on Tuesday. The measure had risen to a revised 134.7 in the previous month.