Nov 06 2018

Rupee Up Tracking Asian Peers Before US Mid-Term Elections

Financial Market Overview

06th November, 2018

Evening Coffee:-                                                                        

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee rose against the dollar tracking Asian currencies ahead of U.S. mid-term elections later today and as crude oil prices eased. The rupee ended at 73.00 to a dollar against 73.12 at the previous close. The currency rose to 72.91 intraday but gave up some gains towards the end of the session after moving in a 17-paise band.
  • The recent rupee gain was tracking the weak dollar index, but this appreciation is unlikely to sustain in coming days amid fears that the crude oil price correction is done with and chances of oil prices rising is possible. The U.S. election outcome will decide the rupee’s fate when the market opens on Friday, but so far, the view is of a likely recovery in the dollar index going ahead.

 Indian Equities:-

  • It’s a flat end to the session on Tuesday, with the Nifty holding 10,500-mark.
  • Among sectors, automobiles, banks, consumption and PSU banks took a big hit, while energy, IT and infrastructure names gained the most. In the broader market, the Nifty Midcap index ended down over half a percent.
  • At the close of market hours, the Sensex closed up 40.99 points or 0.12% at 34991.91, while the Nifty ended higher by 6.00 points or 0.06% at 10530.00. The market breadth was negative as 1,264 shares advanced, against a decline of 1,278 shares, while 153 shares were unchanged

 Global Markets:-

  • European markets are lower today with shares in London off the most. The FTSE 100 is down 0.34% while France’s CAC 40 is off 0.33% and Germany’s DAX is lower by 0.28%.
  • German industrial orders rose unexpectedly in September, driven by bulk orders and higher demand from domestic and other euro zone clients, data showed on Tuesday, suggesting Europe’s largest economy ended the third quarter on a solid footing.
  • Orders edged up 0.3 percent after an upwardly revised increase of 2.5 percent in August, the Federal Statistics Office said. That beat market expectations for a fall of 0.6 percent.
  • Most German firms that export to Britain are poorly prepared for a no-deal Brexit, a survey by the IW economic institute showed on Tuesday, highlighting the risk that a disorderly British exit from the EU could hurt Europe’s largest economy. Britain is due to leave the European Union on March 29, with London and Brussels yet to secure an agreement on the Brexit terms and avoid a disruptive “no deal” scenario.
  • The IW survey of more than 1,100 German firms that export industrial goods and services to Britain showed about 30 percent had made no provisions for a no-deal Brexit, with a further 44 percent having made only low-scale preparations.
  • A senior member of the Northern Irish party propping up Prime Minister Theresa May’s government said on Tuesday that it looked like Britain would leave the European Union without a divorce deal. Looks like we’re heading for no deal.