The rupee ended higher today at 70.9150

The rupee ended higher today at 70.9150

13 Sep 2019 05:34 PM

Financial Market Overview

13th Sep, 2019

Evening Coffee

MARKETS AT CLOSE                                    

Indian Rupee

  • The Indian rupee logged its best week in more than four months against the dollar as risk appetite improved amid reduction in Sino-U.S. trade frictions and a stimulus announcement by the European Central Bank. The rupee ended higher today at 70.9150 to a dollar its highest since Aug. 9, against its previous close of 71.13.
  • The local unit opened at 70.96 and traded in a 70.86-71.16 band. The unit appreciated 1.1% this week, logging its best week since the week ended May 3. The pair has sustained well below the 71.50-mark this week and as long as it stays down, bearish view will persist for the pair Despite today’s appreciation traders would not want to position heavily ahead of the weekend, on fear of surprises that may pop up during the weekend on the Sino-U.S. trade front.

Indian Equities

  • Benchmark indices rebounded and recouped all previous day's losses amid hope of more reforms from government. The BSE Sensex was up 280.71 points at 37,384.99 as 25 out of 30 stocks closed in green, while the Nifty50 climbed 93.10 points to 11,075.90. About three shares advanced for every two shares falling on the BSE.
  • The undertone continues to remain on the positive side. Index is in a recovery mode and there are more legs on the upside. Nifty is likely to test the 11,300-11,500 zone on the upside. Traders should look to position on the long side. We have been contra on the index since 10,750 and have been recommending long for 11,300-11,500. We continue to maintain our bullish stance.

Global Markets

  • European markets are mixed today. The DAX is up 0.43% while the CAC 40 gains 0.36%. The FTSE 100 is off 0.16%.
  • Wall Street advanced on Thursday, and the S&P 500 ended the session within striking distance of its all-time closing high, buoyed by positive developments on the U.S.-China trade front and a promise of continued stimulus from the European Central Bank. Technology gains led the S&P 500 and the Nasdaq higher, while financials gave the biggest boost to the blue-chip Dow, which closed up for the seventh consecutive session, its longest winning streak since May. The Dow Jones Industrial Average rose 45.41 points, or 0.17%, to 27,182.45, the S&P 500 gained 8.64 points, or 0.29%, to 3,009.57 and the Nasdaq Composite added 24.79 points, or 0.3%, to 8,194.47.
  • The number of Americans filing applications for unemployment benefits fell to a five-month low last week, suggesting the labor market remains strong despite slowing job growth. Initial claims for state unemployment benefits declined 15,000 to a seasonally adjusted 204,000 for the week ended Sept. 7, the lowest level since April, the Labor Department said on Thursday. The drop in claims was the largest since May. Data for the prior week was revised to show 2,000 more applications received than previously reported.
  • The U.S. government posted a $200 billion budget deficit in August, bringing the fiscal year-to-date deficit past $1 trillion, according to data released on Thursday by the Treasury Department. The Treasury said federal spending in August was $428 billion, down 1% from the same month in 2018, while receipts were $228 billion, an increase of 4% compared with August 2018. The deficit for the fiscal year to date was $1.067 trillion, compared with $898 billion in the comparable period the year earlier.