The Indian rupee ended marginally higher against the dollar

The Indian rupee ended marginally higher against the dollar

21 May 2019 05:40 PM

Financial Market Overview

21st May, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee ended marginally higher against the dollar as few foreign banks stepped up greenback sales for their corporate clients even as most participants refrained from placing significant bets ahead of the crucial election outcome at home.
  • The rupee changed hands at 69.71 to a dollar against 69.74 at the previous close. The local unit opened unchanged and traded in a 15-paisa band so far. Other Asian currencies traded mixed against the greenback. The dollar index traded 0.2% higher at 98.09, awaiting further cues on interest rate policy by the U.S. authority in its minutes of the latest meeting due tomorrow.
  • USD/INR may slip to 69 in three months if general election results due on May 23 in line with exit polls, Goldman Sachs says. Median of exit polls predict Prime Minister Narendra Modi-led alliance may win 304 of the 542 seats that went to polls; 272 seats required to form government. Pair now at 69.71 against 69.74 previous close.

Indian Equities

  • Indian indices fell 1 percent as they failed to maintain the strong up move which was recorded on May 20, on the back on exit polls for Lok Sabha Election 2019.At close, the Sensex was down 382.87 points at 38969.80, while Nifty was down 119.20 points at 11709.10. About 970 shares have advanced, 1560 shares declined, and 160 shares are unchanged.
  • Tata Motors, BPCL, Zee Entertainment, IndusInd Bank and Adani Ports were the top losers on the Nifty, while gainers were Dr Reddy’s Labs, Bharti Infratel, Britannia Industries, Titan Company and Reliance Industries.

Global Markets

  • European markets are broadly higher today with shares in Germany leading the region. The DAX is up 1.07% while London's FTSE 100 is up 0.77% and France's CAC 40 is up 0.59%.
  • U.S. stocks slid on Monday as the White House's restrictions on Chinese telecoms equipment maker Huawei Technologies Co Ltd weighed on the technology sector and raised concerns that the move would further inflame trade tensions between the United States and China. The Dow Jones Industrial Average fell 84.1 points, or 0.33%, to 25,679.9, the S&P 500 lost 19.3 points, or 0.67%, to 2,840.23, and the Nasdaq Composite dropped 113.91 points, or 1.46%, to 7,702.38.
  • British factories reported the biggest fall in orders this month since late 2016 after a recent push to build up stocks of goods in advance of a Brexit that never came, a survey showed on Tuesday. The Confederation of British Industry's (CBI) monthly order book balance fell to -10 from -5 in April, its lowest level since October 2016
  • The dollar hit a fresh three-week high against its developed-market peers in early trading in Europe Tuesday, after Federal Reserve Chairman Jerome Powell indirectly argued against cutting interest rates in the near term due to the already-high level of corporate debt. Business debt has clearly reached a level that should give businesses and investors reason to pause and reflect, Powell said at a conference, noting that corporate borrowing at a record level of around 35% of corporate assets.
  • Singapore’s economy grew at a faster pace in the first quarter than the government previously estimated, a sign of the city state’s resilience in the face of weaker global demand and a worsening U.S.-China trade war. Gross domestic product rose an annualized 3.8% from the prior quarter, higher than the government’s earlier projection of 2% and above the median forecast of 2.3% in a Bloomberg survey of economists. Compared to a year ago, GDP rose 1.2%.


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