Thursday, 18 June 2020
Our View in a Snapshot
| NIFTY | USD/INR | |
| Expected Open | 9800 | 76.25 |
| Expected Range | 9650 – 9900 | 76.00 – 76.50 |
- Asian stocks set to fall as Wall St snaps 3-day winning streak
- Dollar Gains due to rising geopolitical risks.
- Oil prices drop on demand worries as coronavirus cases rise
Equity
Asian stocks were set to dip on Thursday after a choppy Wall Street session as spiking coronavirus cases and prospects of new lockdowns erased earlier confidence about a global economic recovery.
Australian S&P/ASX 200 futures were down 0.6%, while Japan’s Nikkei 225 futures were off 0.02%.Hong Kong’s Hang Seng index futures were down 0.23%. On Wall Street, The Dow Jones Industrial Average fell 0.65% while the S&P 500 lost 0.36%.
Our View on Stock Market
The Indian stock market is expected to open around 50 to 75 points down from yesterday close tracking asian stocks & global peers.
The Nifty futures are likely to open around 9,800.
The likely range for the day is 9,650 – 9,900
Currencies
The dollar rose from early lows as investors wary of wider geopolitical risks sought its relative safety. Rising tensions between North Korea and South Korea spurred demand for safe-havens, as did clashes between Indian and Chinese troops at a disputed border site.
The dollar index rose 0.11%, with the euro down 0.05% to $1.1237. The Japanese yen strengthened 0.06% versus the greenback at 106.91 per dollar, while Sterling was last trading at $1.2547, down 0.06% on the day.
Our View on USD / INR
The Indian rupee is expected to open gap up against the U.S. currency and likely to weaken against dollar.
The rupee will likely be quoted around 76.25 to a dollar in early trades.
The Rupee is likely to trade in the Range of 76.00 to 76.50
OIL
Oil prices fell more than 1% in early trade on Thursday as a spike in new coronavirus cases in China and the United States renewed fears that people would stay home and stall a recovery in fuel demand even as lockdowns ease.
U.S. West Texas Intermediate (WTI) crude futures were down 1.6%, or 60 cents, at $37.36 a barrel. Brent crude futures fell 1.1%, or 45 cents, to $40.26 a barrel.
Source : Reuters
