Oct 23 2018

The Indian rupee ended little changed at 73.5650

Financial Market Overview

23rd October, 2018

Evening Coffee:-                                                                        

MARKETS AT CLOSE:-

Rupee:-

  • The Indian rupee ended little changed at 73.5650 versus 73.5550 at previous close, as crude oil prices slumped below $79 per barrel, offsetting early losses triggered by weak local shares.
  • A small amount of selling by exporters is helping rupee curb some losses. However, banks bought dollars on behalf of the oil importers despite some easing in crude oil prices, as participants are worried over the supply outlook in the oil market. Brent crude oil contract was trading 0.6% lower below the $80-per-barrel mark, extending overnight fall of 0.8%, after Saudi Arabia’s Energy Minister Khalid al-Falih said the Arab nation would play a “constructive and responsible role” in world energy markets. It was last trading at $79.17.

Indian Equities:-

  • It’s curtains on this session for the market. And it has been a marginal pullback in the last hour from its low points. A fall in crude prices, which slipped to around USD 79 per barrel is likely to have impacted the movement.
  • At the close of market hours, the Sensex ended lower by 287.15 points or 0.84% at 33847.23, while the Nifty closed down 98.50 points or 0.96% at 10146.80. The market breadth is negative as 822 shares advanced, against a decline of 1,747 shares, while 1,013 shares were unchanged.

Global Markets:-

  • European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.60% while France’s CAC 40 is off 1.15% and London’s FTSE 100 is lower by 0.59%.
  • A stronger euro coupled to the end of bond buying may be too much tightening too fast, but there may be little the European Central Bank can do about it. The ECB wants to withdraw stimulus, but doing so would support a euro that traders are betting will fall. Its planned changes to monetary policy could give the single currency a significant boost. When the ECB first got serious about tightening, the euro exploded higher, rising around 20 percent at its extreme.
  • The head of the euro zone’s rescue fund said on Tuesday Italy’s free-spending fiscal plans were a reason for concern, but added there was no cause for panic as contagion to other European countries had so far been “very limited”. We are worried about Italy,” Klaus Regling told a news conference, saying that the Italian government’s fiscal plans were a risk.
  • The British public’s expectations for inflation over the coming year fell by the most since January 2015 this month, reflecting a 10 percent fall in oil prices, a YouGov survey for U.S. bank Citi showed on Tuesday. Short-term public inflation expectations dropped to 2.6 percent in October from 2.9 percent in September, while average expectations for the next 5-10 years fell to 3.2 percent from September’s five-year high of 3.4 percent.