The rupee settled higher at 71.78 to a dollar

The rupee settled higher at 71.78 to a dollar

15 Nov 2019 05:43 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee fell for the second straight week against the dollar on a bigger-than-expected decline in local industrial output and quicker-than-expected consumer inflation in October. The rupee, however, settled higher at 71.78 to a dollar, against 71.97 at the previous close.
  • The unit depreciated 0.7% this week, logging its biggest weekly fall since the week ended Aug. 23, and after depreciating 0.7% in the previous session. The sharp fall in the IIP data has re-ignited worries on an economic slowdown, which has prompted bets that interest rates in India could head further lower, despite the surge in retail inflation, and that has hurt the rupee.

Indian Equities

  • Indian shares settled slightly higher on Friday, paring most of the gains made during the day as investors booked profits going into the weekend, with the broader Nifty 50 index posting its first weekly loss in three weeks.
  • The NSE Nifty 50 index closed up 0.2% at 11,895.45 after rising as much as 0.86%, while the S&P BSE Sensex finished 0.1 higher at 40,286.48. The Nifty 50 index was still down 0.1% for the week, while the Sensex closed 0.08% higher for the week.

Global Markets

  • European markets are mixed to lower. Shares in London are off as the FTSE 100 drops 0.48%. The DAX is down 0.26% while the CAC 40 in France is unchanged.
  • The benchmark S&P 500 posted a slim gain to end with a record closing high on Thursday, as a dour forecast from tech stalwart Cisco Systems Inc was offset by a strong report from big box retailer Walmart Inc. The Dow Jones Industrial Average fell 0.47 points, or -0%, to 27,783.12, the S&P 500 gained 2.72 points, or 0.09%, to 3,096.76 and the Nasdaq Composite dropped 3.08 points, or 0.04%, to 8,479.02.
  • The number of Americans filing applications for unemployment benefits rose to a five-month high last week, but this likely does not signal a shift in labor market conditions as claims for several states were estimated because of Monday's holiday. Initial claims for state unemployment benefits increased 14,000 to a seasonally adjusted 225,000 for the week ended Nov. 9.
  • U.S. producer prices increased by the most in six months in October, lifted by gains in the costs of goods and services, further bolstering the Federal Reserve's stance that it will probably not cut interest rates again in the near term. The Labor Department said on Thursday its producer price index for final demand rose 0.4% last month, the biggest increase since April, after falling 0.3% in September.