Mar 15 2019

The rupee ended at a fresh seven-month high

Financial Market Overview

15th March, 2019

Evening Coffee

MARKETS AT CLOSE:-                                    

Indian Rupee:-

  • The rupee ended at a fresh seven-month high of 69.0900/69.1000 to the dollar, against previous close of 69.3525/69.3625 on continuous foreign fund inflows into local equity and bond markets. However, sporadic intervention by the central bank at various levels slowed the unit’s appreciation.
  •  The one-year swap rate was one basis point lower at 6.04% against 6.05% at previous close. The five-year swap rate was down four bps to 6.09% from 6.13% earlier.
  • India’s trade deficit narrowed to $9.60 billion in February, dragged down by a fall in gold and oil imports, the trade ministry said in a statement on Friday. Trade deficit was $14.73 billion in January.

Indian Equities:-

  • The S&P BSE Sensex pared gains in late trade after hitting a top of 38,254 during the day on March 15. The index rose above 38,000 for the first time since September 17, 2018. 
  • The Nifty50 also reclaimed 11,400 for the first time since September 18, 2018. NiftyBank touched yet another record high of 29,520, led by gains in Kotak Mahindra Bank, IDFC First Bank, SBI, PNB, Federal Bank, Bank of Baroda and ICICI Bank.

Global Markets:-

  • European markets are broadly higher today with shares in France leading the region. The CAC 40 is up 1.05% while Germany’s DAX is up 0.99% and London’s FTSE 100 is up 0.70%.
  • The consumer price index rose 1.5% in February from the same month a year earlier. That was higher than the 1.4% recorded in January and confirmed a preliminary reading. Prices for the month rose 0.3%, after falling 1.0% in January.
  • Core inflation, which excludes energy, food, alcohol and tobacco prices, slowed to an annual rate of 1% from a revised 1.1% in January. That is well below the level targeted by the European Central Bank, which aims for an inflation rate of close to, but just below, 2% in the medium term.
  • New home prices in China grew at their slowest pace in 10 months in February in sign of slackening demand as the economy cools further, leaving authorities walking a tight rope between loosening some existing curbs and flushing out speculators.
  • Average new home prices in China’s 70 major cities rose 0.5 percent in February, slowing from a 0.6 percent gain in January and marked the lowest growth rate since April 2018.
  • Exports are expected to have slipped 0.9 percent in February from a year earlier, the poll of 17 economists found, after slumping 8.4 percent in January, the biggest decline in more than two years.