The Indian rupee rose against the dollar, as local shares strengthened ahead of the general election’s

The Indian rupee rose against the dollar, as local shares strengthened ahead of the general election’s

22 May 2019 05:39 PM

Financial Market Overview

22nd May, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee rose against the dollar, as local shares strengthened ahead of the general election’s outcome tomorrow, where Prime Minister Narendra Modi is expected to come back to power.
  • The rupee ended at 69.66 to a dollar in Mumbai, against 69.71 at the previous close. It opened at 69.67 and has traded in a 69.62- 69.81 band for the day. Most other Asian currencies ended lower against the dollar.
  • Rupee saw a brief fall intraday due to dollar bids, likely from state-run lenders on behalf of importers, but overall traders kept positions light for the day. Gain in shares shows that participants hope for NDA’s win.

Indian Equities

  • It is a positive close for the Indian market in a volatile day ahead of counting of Lok Sabha Election 2019.
  • At close, the Sensex was up 140.41 points at 39110.21, while Nifty was up 28.80 points at 11737.90. About 1356 shares have advanced, 1147 shares declined, and 183 shares are unchanged.
  • IndusInd Bank, Sun Pharma, Bajaj Auto, BPCL and Eicher Motors were among major gainers on the Nifty, while losers were Tech Mahindra, Indiabulls Housing, Bharti Infratel, ITC and Yes Bank.

Global Markets

  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.27% while Germany's DAX is down 0.09% and France's CAC 40 is down 0.24%.
  • The U.S. dollar was hovering near one-month highs against a currency basket on Wednesday, supported by higher U.S. Treasury yields after the U.S. temporarily eased restrictions on Chinese telecommunications giant Huawei.
  • The dollar index, which measures the greenback against a basket of six major currencies, was at 97.942, just below Tuesday’s peaks of 97.953, the highest level since April 26. The index is up 2% year to date.
  • The British pound sank to its lowest levels since January, with GBP/USD down 0.3% to 1.2666 after Prime Minister Theresa May’s final attempt to win over support for her EU withdrawal deal fell flat, throwing the country into renewed turmoil over Brexit.
  • Dollar loans to Chinese borrowers have cratered this year, thanks to both a decline in demand and increased wariness among lenders amid escalating U.S.-China tensions. Syndicated dollar loan issuance to Chinese borrowers has tumbled 62% from the start of the year through May 17, to $7.3 billion. That’s the lowest level since 2012.
  • British inflation rose last month by less than investors and the Bank of England had expected but still hit its highest level this year, pushed up by a rise in energy bills. Consumer prices rose at an annual rate of 2.1% in April after a 1.9% increase in March, the Office for National Statistics said on Wednesday. A poll of economists had pointed to a rate of 2.2%, the same as the BoE's forecast.
  • Japanese exports contracted for the fifth month in April due to a slump in shipments of chip-making equipment to China, underlining the growing threat to the world's third-biggest economy from a bruising Sino-U.S. trade war.


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