Jun 01 2018

Upbeat India GDP lifted Rupee to a 3-Week High

Financial Market Overview

1st June, 2018

Morning Coffee:-                                                                                  

MARKETS AT OPEN:-

Rupee:-

  • Rupee opens at 67.45 against previous close of 67.4050. Indian economy grew 7.7% during the Q4, exceeding the market expectations and previous data of 7.2%. The fiscal deficit stood at 3.53% of GDP.
  • We expect the pair to tip in range between 67.10-67.50 today.

 

Indian Equities:-

  • Benchmark indices are flat at the opening despite of good GDP Q4 data. 30 share BSE Sensex gaining over 14 points at 35,336, while the 50 share NSE Nifty is trading around 10,740 mark.
  • Nifty Bank index fell 150 points and Nifty Midcap index declined 40 points.

 

Global Markets:-

  • DJIA fell 250 points at after Washington imposed tariffs on steel and aluminium imports from EU, Canada and Mexico; these countries were provided a temporary exemptions when US levied tariffs on industrial metals in March.
  • There was almost 5 basis points rise in U.S. bond yields to 2.871 percent following easing worries on Italian politics.
  • The yen moved above 109 even as the Bank of Japan reduced the amount of its Japanese government bond (maturing in 5-10 years) buying for the first time since late February. Yen is trading at 109.2 against the greenback.
  • The euro traded at $1.1692 little changed on the day but keeping intact its recovery from Tuesday’s 10-month low of $1.1510.
  • The Pound remains among the worst performers on a weak dollar environment, as the GBP/USD pair unable to hold gains beyond 1.3300 level.
  • Brent crude is off 17 cents at $77.39.
  • Data watch – Non-farm payrolls, Unemployment rate and ISM Manufacturing PMI from US; Manufacturing PMI from UK.