Sep 14 2018

The Indian rupee opened higher as inflation cools at home

Financial Market Overview

14th September, 2018

Morning Coffee:-

MARKETS AT OPEN:-

Rupee:-

  • The Indian rupee is opened higher against the dollar after lower-than-expected consumer inflation at home as well as in the U.S. The rupee is opened at 71.70 versus the dollar, compared with its previous record low closing of 72.19. Momentum from Wednesday when the rupee jumped amid hopes of measures by policymakers, yesterday’s rally in Asian currencies on optimism over proposed trade talks between the U.S. and China, lower crude oil prices and tepid consumer price inflation data provide “a lot of ammunition” to dollar bears as markets in India reopen after a day off.
  • We expect the pair to trade in the range between 71.60 to 72.10

 

Indian Equities:-

  • It’s a strong start to the market on Friday morning, with the Nifty racing past 11,450, up over 100 points, while the Sensex is higher by over 250 points.
  • Steady global cues, easing oil prices and stronger rupee is aiding sentiment on D-Street. Among sectors, banks, auto, infrastructure, metals and pharma are all trading in the green, while the Nifty Midcap index is up around 1 percent.
  • The Sensex is up 274.92 points or 0.73% at 37992.88, while the Nifty is higher by 110.20 points or 0.97% at 11480.10. The market breadth is positive as 481 shares advanced, against a delcine of 91 shares, while 40 shares were unchanged.

 

Global Markets:-

  • Asian markets are higher today as Japanese, Chinese and Hong Kong shares show gains. The Nikkei 225 is up 0.97% while the Hang Seng is up 0.70%. The Shanghai Composite is up 0.25%. The Australian’s ASX200 is positive today by 39 points and 0.65% .
  • European markets finished mixed as of the most recent closing prices. The DAX gained 0.19%, while the FTSE 100 led the CAC 40 lower. They fell 0.43% and 0.08% respectively.
  • Apple led a rebound in technology shares and boosted all three major U.S. stock indexes on Thursday, while trade worries eased after China welcomed new talks with the United States.
  • The Dow Jones Industrial Average rose 147.07 points, or 0.57 percent, to 26,145.99, the S&P 500 gained 12.56 points, or 0.43 percent, to 2,901.48 and the Nasdaq Composite added 48.74 points, or 0.61 percent, to 8,002.97.
  • The dollar index was little changed in early trading on Friday after closing at its lowest level in one-and-a-half month the previous day. The euro climbed to near 1.17 against the dollar, helped by the soft U.S inflation data. The European Central Bank, on expected lines, left the policy rate unchanged.
  • The inflation data complicates MPC’s next month decision “On one hand, the recent decline in the rupee warrants a rate increase like other emerging market central banks have done. On the other, inflation running below MPC’s forecast for the current quarter calls for a pause after two successive rate hikes.
  • The U.S. Labor Department reported on Thursday that headline CPI last month rose by 2.7%, slowing from 2.9% in the month prior and less than the 2.8% expected by economists. The core CPI rose 2.2%, down from 2.4% in the previous month.