May 16 2018

Rupee turns higher on likely RBI intervention

Financial Market Overview

16th May, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee turns higher as Dollar sales by nationalised banks, probably on behalf of RBI, offset rise in dollar index, Treasury yields. Pair USDINR now at 67.81, off 68.14 opening high and 68.07 previous close.
  • Data released last evening showed that India’s trade deficit widened to $13.72 billion last month from $13.69 billion in the previous month. The deficit was at $13.25 billion in the same month a year earlier. Exports were up 5.2% on-year, while imports growth eased to 4.6% in April.
  • Pair to tip in range between 67.75-68.05.

Indian Equities:-

  • Benchmark indices opened sharply lower, following weak trend in global stocks and uncertainty over formation of government in Karnataka.
  • The 30-share BSE Sensex was down 166.25 points at 35,377.69 and the 50-share NSE Nifty declined 54.20 points to 10,747.70.

Global Markets:-

  • Asian markets are mixed today. The Hong Kong’s Hang Seng is off 0.51% , the Shanghai Composite is down 0.27% and the Australain ASX is trading higher by 0.41%.
  • European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.23% and the FTSE 100 rose 0.16%. The DAX lost 0.06%.
  • US. stocks fell on Tuesday, and the Dow snapped an eight-day winning streak, after bond yields rose, strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the United States and China. Based on the latest available data, the Dow Jones Industrial Average fell 193 points, or 0.78 percent, to 24,706.41, the S&P 500  lost 18.68 points, or 0.68 percent, to 2,711.45 and the Nasdaq Composite dropped 59.69 points, or 0.81 percent, to 7,351.63.
  • Japan’s economy, the world’s third largest, shrank by 0.6 percent on an annualized basis, a much more severe contraction than the median estimate for an annualized 0.2 percent decline.
  • The 10-year Treasury yield climbed well past the closely watched 3% level and the dollar index rose by the most in three weeks in yesterday’s session amid an upward revision in U.S. March retail sales and in-line April retail sales.
  • The U.S. Commerce Department said yesterday that retail sales rose by 0.3% month-on-month in April and so-called core retail sales, which excludes automobiles, gasoline, building materials and food services, increased by 0.4%. Data for March was revised higher to show sales climbing by 0.8% on-month, up from 0.6% previously reported. Core retail sales for March were upwardly revised to 0.5%.