Financial Market Overview
21st February, 2019
- The Indian rupee turned lower against the dollar in afternoon trade, as state-run banks bought the greenback on behalf of importers amid strength in the dollar index, erasing early gains from likely dollar inflows.
- The rupee changed hands at 71.14 to a dollar, against 71.11 at previous close. The currency opened at 71.0750 and extended gains to 70.92 before declining of day’s low of 71.20.
- Indian share indexes were steady on Thursday, tracking a broader Asian rally as trade talks between China and the United states seemed to progress.
- Shares of state-run lenders rejoiced after the government said it will inject 482.39 billion rupees ($6.79 billion) into 12 lenders as part of its recapitalisationprogramme.
- The broader NSE index rose 0.41% to 10,779.60, while the benchmark BSE index gained 0.38% to 35,890.92.
- Asian markets finished mixed with shares in Hong Kong leading the region. The Hang Seng was up 0.30% and Japan’s Nikkei 225 was up 0.15% while China’s Shanghai Composite was down 0.34%.
- European markets are also mixed today. The CAC 40 is up 0.12% while the DAX gains 0.34%. The FTSE 100 is down 0.26% while the IBEX35 is 0.24% higher.
- The Brent crude oil contract was trading flat at $67.08 per barrel, rising above the $67-per-barrel mark for the second consecutive session today. The contract gained 0.9% yesterday and was buoyed by supply cuts by the Organization of the Petroleum Exporting Countries.
- The dollar index was trading 0.1% higher at 96.56, after shedding 0.1% overnight amid the release of the Federal Reserve policy minutes that showed policy-setting committee was split on a direction for interest rates.
- Trade talks between the two nations resumed in Washington on Feb. 19 and are expected to continue through tomorrow. The Chinese yuan was trading 0.2% higher at 6.7092.
- China’s central bank is not yet looking for a cut in the benchmark interest rates to help the slowing economy, despite cooling inflation and a stronger yuan, which have fanned market expectations of such a move, as per sources.