Rupee Extends its Losses; Slips to Lowest Level Since Aug 2013

Rupee updates-CapitalHeightThe Indian rupee, extended its losses for the fifth consecutive day and traded 17 paise down at 68.73 against the US dollar, its lowest level since August 2013.

The rupee crashed to a nearly 39-month low of 68.84 amid sustained foreign fund outflows and the greenback’s surge in overseas markets.

The rupee breached the 68.80 mark as upbeat economic data strengthened the prospect for higher US interest rates, while the dollar’s bull run continued as US bond yields hovered near multi-year highs.

The rupee has fallen against the dollar since Donald Trump won the presidential election in the US on November 9, 2016. It has fallen from the 66.43 level and reached the 68.8325 mark today.

On the global front, Federal Reserve chair Janet Yellen has announced that Trump’s election has done nothing to change the federal reserve’s plans for a rate increase “relatively soon.” A rate hike in US will lead to flow of money from emerging markets leaving their currencies and assets vulnerable to the negative risks.

Chinese Yuan is also sinking, with values tumbling to a record low of 6.9378 against the US dollar at one point of time yesterday in the offshore markets. US dollar index will witness further gains, with values expected to hit 105 in the coming weeks. Euro seems to be the most vulnerable, influenced by the uncertainty over Italian constitutional referendum in the first week of December.

The Indian Rupee closed lower by 31 paise at 68.56/$. The local unit hit a high of 68.67/$ and a low of 68.83/$ today.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.47 while for the Euro it was 72.78. The RBI’s reference rate for the Yen stood at 61.71; reference rate for the Great Britain Pound (GBP) stood at 84.9665.

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Wall Street ends higher on Tuesday; Dow breaks 19,000 for 1st time

wall-streetWall Street closed higher on Tuesday, hitting new all-time highs, as investors digested housing data and kept an eye on president-elect Donald Trump’s policy agenda. The Dow Jones Industrial Average topped 19,000 intra-day.

The Dow Jones Industrial Average climbed 66.98 points, or 0.35% to 19,023.67. The S&P 500 rose 4.73 points, or 0.22% to 2,202.91. The Nasdaq Composite gained 17.49 points, or 0.33% to 5,386.35.

The S&P 500 posted 52 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 319 new highs and 22 new lows.

The S&P 500 ended above 2,200, led by gains in telecommunications , up 2%, and consumer discretionaries , up 1.2%. The small-cap Russell 2000 index also set another record high close.

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Wall Street ends lower on Friday

wall-streetWall Street ended lower on Friday. The Dow Jones industrial average fell 35.89 points, or 0.19% to 18,867.93 while the S&P 500 dropped 5.22 points, or 0.24% to 2,181.9.

The Nasdaq Composite slipped 12.46 points, or 0.23% to 5,321.51 after hitting a record of 5346.8.

Consumer staples fell 0.4 percent, weighed down by a 1.3% fall in Procter & Gamble. The S&P financial sector ended up 0.08%, and has risen 10.8% since the U S election, boosted by the prospect of higher interest rates and lighter regulation.

The S&P 500 posted 32 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 253 new highs and 30 new lows.

Federal Reserve Chair Janet Yellen said on Thursday the central bank could raise interest rates “relatively soon,” sending out a clear signal for a December move.

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Nifty nears 6-month low; shuts below 8,100 mark

Dalal Street CapitalHeightThe Indian equity market declined for the fourth consecutive session. A sharp plunge in the rupee against the dollar and exception of strong foreign capital outflows after hints of rate hike in December by US Federal Reserve Chairwoman, Janet Yellen dampened the market sentiment. The Sensex dropped over 100 points during the last trading session while the broader Nifty50 hit a 6-month low. The domestic market posted its worst week since February 12.

Moreover, the prevailing cash crunch following the government’s demonetization decision has severely impacted select sectors such as real estate, consumer goods and metal. Besides, a mixed trend on other Asian bourses also influenced the trading momentum. Prices of few key commodities have fallen considerably since the move was announced amid drying up of demand. Also, fears have risen regarding production of the key commodities as farmers are not getting enough cash to buy seeds for winter crops.

The 30-share index closed down 77 points, or 0.30%, at 26,150.24. The BSE Sensex opened at 26,270, touched an intra-day high of 26,349 and low of 26,118.

The NSE Nifty closed with a loss of mere six points at 8,074. The NSE Nifty opened at 8,097 hitting a high of 8,129 and low of 8,048.

Among the 50-stocks of Nifty, NTPC, Eicher Motors, Sun Pharma, Bharti Airtel, Hero MotoCorp and Ambuja Cements were among the gainers on NSE, whereas Zee, Asian Paints, Tata Steel, Bharti Infratel, GAIL and TCS were among the losers today.

Today’s decline was led by the metal, consumer durables, banking, FMCG, finance and technology stocks, while oil & gas, realty, power, pharma and telecom were among the gainers.

The India VIX (Volatility) index was down 4.83% at 17.8050. Out of 1,367 stocks traded on the NSE, 610 declined and 714 advanced today. The BSE Midcap and Smallcap indices ended up in the range of 0.2-0.6%.

The rupee was trading down 34 paise at 68.15 per US dollar.

Asian markets closed mostly lower on Friday, with the Japanese market leading gains on the back of a relatively weaker yen, helping shares of the country’s big exporters. At the close in Tokyo, the Nikkei gained 0.58% to hit a new 6-month high. Hang Seng closed marginally higher, whereas Shanghai Composite slipped 0.5%.

European indices are trading in red.  The FTSE 100 and CAC 40 were trading down by 0.4% each, while DAX is marginally lower.

Meanwhile, IT stocks continue to reel under pressure for the third straight day after Nasscom revised the IT sector’s growth forecast downwards to 8-10 per cent this year, as its biggest members such as TCS, Wipro, and Infosys struggle to grow faster because of an uncertain environment.

Punj Lloyd gained 2.6% to Rs 19.55 on NSE after the company said that its wholly-owned subsidiary executed definitive agreements with India Power Green Utility to co-develop 30 megawatts of solar assets.

Dilip Buildcon advanced 1.6% after the company announced that Northern Coalfields (M.P) has declared DBL-DECO (a joint venture of the Company) as the successful bidder (L1) for Excavation of Overburden of First Dig (Solid) and Re-handling by Mechnical Means at specified places at NIGAHI OCP of NCL at a project cost of Rs 1,469.8 crore.

Career Point rose 1%. The company has acquired 1,68,000 fully paid up equity shares 40% of Rs 10 each of Gyan Eduventure Pvt. Ltd., the subsidiary of the Company and consequently, Gyan Eduventure Pvt. Ltd. has now become a wholly owned subsidiary of the Company.

Canara Bank gained 2.6% after the bank has revised deposit interest rates in different maturities in retail and bulk deposits in the range of 5bps to 25 bps and these are effective from November 21, 2016.

IL&FS Transportation Networks advanced 1% after the company announced that the joint venture of the Company and IL&FS Engineering and Construction Co in the ratio of 51:49, has emerged as the Lowest Bidder for the development of two road projects of Madhya Pradesh Road Development Corporation under Madhya Pradesh District Road II Sector Project. The company had quoted an amount of Rs 213.5 crore for Project I and Rs 161.7 crore for Project 2 respectively. The construction period for Project 1 is 730 days and Project 2 is 548 days.

Deepak Fertilisers dropped 6.2%.  The company reported a net profit of Rs 26.96 crore for the quarter ended September 30, 2016 against Rs 28.31 crore in the corresponding quarter last year.

Petronet LNG climbed 8.3%.  The company’s net profit of Rs 460 crore in July-September is 82% higher than the Rs 253 crore net profit in the same period a year ago.

Reliance Industries rose 1% after the company entered into a global partnership agreement with GE to enter into the Industrial Internet of Things (IIOT) space by building joint applications on the latter’s Predix platform.

A total of eight stocks registered a fresh 52-week high in trade today, whereas 56 stocks touched a new 52-week low on the NSE.

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Rupee Ends Stronger at 67.81/$

Indian RupeeThe Indian rupee closed stronger as the US currency retreated a tad against other currencies and ahead of US Federal Reserve Chair Janet Yellen‘s testimony to the US Congress today.

On the economy front, India’s retail price inflation fell to a 14-month low of 4.2% in October from 4.39% a month ago as inflation in fruits and pulses softened, raising the chances of an interest rate cut by the Central Bank.

Indian government announced some new measures to ease the cash crunch caused by the move, including allowing farmers to draw money from banks against loans sanctioned to them.

The Indian Rupee closed higher by 20 paise at 67.81/$. The local unit hit a high of 67.93/$ and a low of 68.02/$ today.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.91 while for the Euro it was 72.56. The RBI’s reference rate for the Yen stood at 62.10; reference rate for the Great Britain Pound (GBP) stood at 84.3178.

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