Market Flash – September 10, 2018 Sensex, Nifty fall around 1%; rupee hits 72.28/$ Benchmark indices are trading in a negative zone following Asian markets after US President Donald Trump raised the stakes in the heated trade dispute with China. Meanwhile, rupee also opened at fresh record low of Rs 72.27/$, contributing to the weak sentiment. At 10:10 AM, the S&P BSE Sensex was trading at 38,130, down 259 points or 0.7%. Market breadth was negative and out of a total of 2,076 shares traded on the Bombay Stock Exchange, 924 advanced while 1,051 declined and 126 remained unchanged. The Nifty50 was down 83 points or 0.7% at 11,507. 10-year Indian G-Sec yields were trading at 8.109% in morning against the previous close of 8.031%. Market declined last week amid broadly negative global cues due to heightened worries over international trade conflicts. Sentiment was also affected by the Indian rupee hitting a record low and rising crude oil prices. In the week ended Friday, September 7, 2018, the S&P BSE Sensex fell 255 points or 0.66% to settle at 38,390. The Nifty50 index fell 91 points or 0.78% to settle at 11,589. GLOBAL MARKETS Asian shares started the week in the red again on Monday, faltering for the eighth straight day and the dollar climbed against major currencies after Trump threatened tariffs on a further $267 billion worth of Chinese imports, on top of earlier promises to levy duties on $200 billion worth of Chinese goods. MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.7%, piling on losses from last week when it dropped 3.5% for its worst weekly showing since mid-March. Japan’s Nikkei opened lower but quickly pared losses after revised second-quarter gross domestic product data showed the world’s third-biggest economy grew at its fastest pace since 2016. Chinese shares were also down with the blue-chip index off 1% while Shanghai’s SSE Composite stumbled 0.7%. Hong Kong’s Hang Seng index slipped 0.9%. US stocks closed lower Friday after US President Donald Trump threatened tariffs on a further $267 billion worth of Chinese imports, on top of earlier promises to levy duties on $200 billion worth of Chinese goods. While the US tariffs on $200 billion Chinese goods have not been implemented, Trump said they could "take place very soon, depending on what happens with them." US jobs report that showed that 201,000 jobs were added in the month of August. INDIAN RUPEE The rupee slumped to a fresh record low of 72.18 by falling 45 paise against the US dollar due to strong demand for the US currency from importers and strengthening of dollar against other currencies overseas on upbeat jobs data. At the Interbank Foreign Exchange (Forex) market, the local currency opened at a record low of 72.15 a dollar from its previous close of 71.73 and slipped to hit a fresh low of 72.18, down by 45 paise. It had breached its previous record low of 72.11 hit on September 6. CRUDE OIL Oil prices rose on Monday as US drilling for new production stalled and as the market eyed tighter conditions once Washington's sanctions against Iran's crude exports kick in from November. US West Texas Intermediate (WTI) crude futures were at $68.19 per barrel at 0344 GMT, up 44 cents, or 0.65%, from their last settlement. Brent crude futures climbed 50 cents, or 0.65%, to $77.33 a barrel. WEEK AHEAD Indian equity indices would be driven by macroeconomic data, progress of monsoon, trend in global markets, investment by foreign portfolio investors and domestic institutional investors, the movement of rupee against the dollar and crude oil price movement. Indian stock market will remain shut on Thursday, September 13, 2018, on account of Ganesh Chaturthi. July industrial production and August CPI inflation will be announced on Wednesday. WPI inflation data for August will be announced on Friday. On the global front, China's consumer price inflation data for August will be unveiled today. European Central Bank (ECB) will decide on interest rate on Thursday. US core inflation data for August 2018 will be declared on Thursday whereas US Retail sales data for August 2018 will be declared on Friday. Source: Reuters, BSE, PTI Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Disclaimer: The article (including market views expressed herein) is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. The data/information used/disclosed in the article is only for information purposes and not guaranteeing / indicating any returns. The article provides general information and comparisons made (if any) are only for illustration purposes. 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