by admin | May 25, 2021 | Economy, Finance, Markets, News
Mumbai : High global crude oil prices, along with fears over an escalation in the trade war and outflows of foreign funds from the country’s equity market segment pulled the Indian rupee to a new record low of 72.11 per US dollar on Thursday.
However, the Indian rupee later recovered and settled at a record closing low of 71.99, weaker by 24 paise than its previous close of 71.75 per greenback.
In the intra-day trade, the Indian rupee touched 72.11 per US dollar — the lowest ever mark — against the greenback at the Inter-Bank Foreign Exchange Market.
“Rupee was surprisingly under pressure today, unlike as overnight other Asian currencies which were tad stronger,” Edelweiss Securities’ Head of Forex and Rates Sajal Gupta, told IANS.
“Markets are expecting some support from policy makers in terms of a separate window for OMCs (Oil Marketing Companies) and more relaxation on buyers credit and ECB (External Commercial Borrowing) guidelines. RBI intervened at various levels but was not very effective to contain the movement.”
The RBI is known to enter the markets via intermediaries to either sell or buy US dollars to keep the rupee in a stable orbit.
According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities: “Brent crude prices are showing signs of recovery, which is a negative for rupee. Tonight, all eyes will be on Trump’s announcement of tariffs on Chinese imports.”
“If US backs off, then it can be a positive development for rupee, otherwise negative. rupee has a strong correlation with the Chinese currency. Whatever will be the decision of the US administration on trade with China, according Chinese currency will react.”
“Over the near term a range of 71.50 and 72.30 is expected on spot.”
Apart from global cues, outflows of foreign funds from the country’s equity segment subdued the Indian rupee.
The provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 455 crore on Thursday.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Broadly negative global cues such as high crude oil prices and concerns over escalation in global protectionist measures coupled with a weak rupee depressed the Indian equity markets on Tuesday.
According to market observers, heavy selling pressure was witnessed in consumer durables, banking and auto stocks.
Index-wise, the Nifty50 on the National Stock Exchange (NSE) closed at 11,520.30 points, lower 62.05 points or 0.54 per cent from its previous close of 11,582.35 points.
Similarly, the barometer S&P BSE Sensex closed in the negative territory. It had opened at 38,460.96 points, closed at 38,157.92 points, lower by 154.60 points or 0.40 per cent from the previous close of 38,312.52 points.
The Sensex registered an intra-day high of 38,518.56 points and a low of 38,098.60 points during the day’s trade.
“Selling continued at Dalal Street as the markets corrected further on Tuesday to end in negative territory for the second consecutive session,” said Deepak Jasani, Head of Retail of Research, HDFC Securities.
“Major Asian markets have closed on a positive note barring the Jakarta and Nikkei indices. European indices like FTSE 100, DAX and CAC 40 traded in the red.”
Geojit Financial Services’ Head of Research, Vinod Nair, said: “Continued weakness in currency and surge in oil price dragged the indices to a consolidation.
“Additionally, concerns on widening deficit and inflation trajectory led domestic bond yield to break 8 per cent mark. Weak global market on account of trade tensions further steered the investor’s sentiment.”
On the currency front, the Indian rupee crashed to close at a record low of 71.58 against the US dollar, weaker by 37 paise than its previous close of 71.21 per greenback.
Investment-wise, provisional data with exchanges showed that foreign institutional investors bought scrips worth Rs 32.64 crore and domestic institutional investors sold stocks worth Rs 21.41 crore.
Sector-wise, only the S&P BSE Teck (technology, entertainment and media) index was in the positive, up by 102.11 points.
In contrast, the S&P BSE consumer durables index declined by 562.61 points, the banking index fell by 443.96 and auto stocks ended 434.70 points lower than its previous close.
In a major stock-wise development, market capitalisation (m-cap) of Tata Consultancy Services (TCS) crossed Rs 8 lakh crore for the first time. It is the second company to reach the landmark level after Reliance Industries.
The m-cap of TCS closed at Rs 8.01 crore on the BSE. Share price of TCS on the BSE Sensex closed at Rs 2,093.20 higher by Rs 38.25 or 1.86 per cent from its previous close.
The top gainers at the Sensex were Infosys up 2.64 per cent at Rs 735.65, TCS up 1.86 per cent at Rs 2,093.20; Wipro, up 1.42 per cent at Rs 313.55; Axis Bank, up 1.39 per cent at Rs 640.50, and Reliance Industries, up 0.97 per cent at Rs 1,242.35.
The majors losers were Asian Paints, down 3.49 per cent at Rs 1,312.05; State Bank of India, down 3.20 per cent at Rs 296.60; Hindustan Unilever, down 2.80 per cent at Rs 1,651.40; Coal India, down 2.61 per cent at Rs 279.95 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : Caution ahead of key macro-economic growth data, coupled with high global crude oil prices, pulled the Indian rupee to a fresh low of 71 to a US dollar on Friday.
According to analysts, the continuous outflow of foreign funds also adversely impacted the rupee’s prospects.
Around 11.30 a.m. the Indian rupee was pegged at 70.97 to a US dollar after it touched 71 — the lowest ever mark — against the greenback.
It opened the day’s trade at the Inter-Bank Foreign Exchange Market at over 70.90 to a US dollar which was below its record low of 70.85 to a greenback.
On Thursday, the Indian rupee closed at 70.74-75 against the US dollar, weaker by 15 paise from Wednesday’s close of 70.59-60 to a US dollar.
“Dollar-Rupee touched life time high of 71 on spot today. Oil prices have been a major factor that has weakened rupee. Brent crude is trading at $78, $2 short of this year’s high,” said Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities.
“Emerging market currencies are under pressure. Currencies of China, Indonesia, Turkey, Argentina, Brazil, Russia and South Africa are all depreciating.”
Apart from high crude oil, outflow of foreign funds from the Indian equity and bond markets has had an adverse impact on the rupee.
Investment-wise, data from the NSDL on Thursday showed that foreign portfolio investors (FPIs) sold scrip worth Rs 1,379.34 crore.
Besides, caution prevailed ahead of the release of India’s GDP and fiscal deficit data. The key macro-economic data points will be released on Friday.
“Traders are expecting Q1FY18 GDP to slowdown from 7.7 to 7.2-7.4 per cent. A weaker growth and rising inflation augurs poorly for the rupee,” Banerjee told IANS.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Positive global cues on easing trade protectionist measures along with an appreciation in the Indian rupee lifted the key equity indices — S&P BSE Sensex and the NSE Nifty50 — to settle at fresh high levels on Monday.
On a intra-day basis, the BSE Sensex touched a fresh high of 38,340.69 points, while the Nifty50 climbed a peak of 11,565.30 points.
Index-wise, the wider NSE Nifty50 closed at 11,551.75 points, up 81 points or 0.71 per cent from its previous close of 11,470.75 points.
The benchmark BSE Sensex which had opened at 38,075.07 points, closed at 38,278.75 points, higher by 330.87 points or 0.87 per cent from its previous close of 37,947.88 points. It touched an intra-day low of 38,050.69 points.
In the broader markets, the S&P BSE Mid-cap ended higher by 1.05 per cent and the S&P BSE Small-cap rose by 0.14 per cent.
The BSE market breadth was tilted towards the bulls with 1,437 advances and 1,307 declines.
“Positive global stocks, optimism over a trade resolution between the USA and China and strong institutional activity at home fuelled investor sentiment and pushed the bourses to close the day with gains,” Abhijeet Dey, Senior Fund Manager for equities at BNP Paribas Mutual Fund.
The two economic giants are expected to hold lower-level trade talks this month, offering hope that they might resolve an escalating tariff war, Dey added.
Accordingly, major Asian markets closed on a positive note, barring the Nikkei and Straits indices and European indices including FTSE 100, DAX and CAC 40 traded in the green, said Deepak Jasani, Head of Retail Research at HDFC Securities.
Besides, global cues, the appreciation in Indian rupee supported the indices’ upward movement.
On Monday, the Indian rupee appreciated by 33 paise to settle at 69.83 per US dollar, from its record closing low of 70.16 per dollar on the previous trade session.
“The rupee has appreciated today as the US dollar index has witnessed profit booking,” Anand Rathi Shares and Stock Brokers’ Research Analyst Rushabh Maru told IANS.
“There is an optimism in the market that US and China would find a solution for ongoing trade conflict. So that has also supported the rupee.”
Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 483.04 crore and the domestic institutional investors purchased stocks worth Rs 593.22 crore.
Sector-wise, the S&P BSE capital goods index rose 668.41 points, the metal index was up 332.36 points and the auto index rose by 244.22 points.
In contrast, the S&P BSE IT index declined by 188.84 points, consumer durables fell 127.24 points and Teck (entertainment, technology and media) index ended lower by 76.07 points from its previous close.
The major gainers on the Sensex were Larsen and Toubro, up 6.74 per cent at Rs 1,323.95; Tata Motors (DVR), up 5.74 per cent at Rs 143.80, Tata Motors, up 4.74 at Rs 269.55; ONGC up 3.34 per cent, at Rs 168.55; and Tata Steel, up 3.24 per cent at Rs 599.40 per share.
The majors losers were Infosys, down 3.22 per cent at Rs 1,385.20; Maruti Suzuki, down 0.79 per cent at Rs 9,075.90; ICICI Bank, down 0.50 per cent at Rs 338.35; Axis Bank, down 0.46 per cent at Rs 624.20; and Hindustan Unilever, down 0.30 at Rs 1,775.40 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Rohit Vaid,
Mumbai : Key macro-economic inflation data points, combined with the last of first quarter earning results and the direction of foreign fund flows, are expected to drive the Indian equity indices next week.
Analysts opined that the movement of the Indian rupee against the US dollar as welll as global crude oil price volatility and high stock valuations will also affect investor sentiments.
“The domestic markets are likely to witness another eventful week, with more quarterly earnings, trends in global markets, investment by foreign and domestic investors,” SMC Investments & Advisors’ Chairman and Managing Director D.K. Aggarwal told IANS.
In terms of global cues, Delta Global Partners Founder and Principal Partner Devendra Nevgi told IANS: “The risk emanating from a potential Turkey-centred contagion spreading to EU banks will dominate the risk sentiment in the EMs (emerging markets) and Indian markets next week.”
“The USD is higher and the yields lower, indicating a risk-aversion scenario. The Indian rupee’s moves need to be closely watched, since it is already closer to an all-time low. The Turkish Lira’s steep fall and USD’s appreciation would negate the sentiment towards EM currencies in general, including the rupee.”
According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, the Indian rupee is expected to range from 68.70 to 69.30 against a US dollar in the coming week.
“We should be prepared for a devaluation. However, lower crude oil prices and the Reserve Bank of India’s (RBI ) invention in defending the Indian rupee against the USD will mitigate the magnitude of devaluation,” Banerjee told IANS.
On the currency front, the rupee closed at 68.83 on August 10, weakened by 22 paise from its previous week’s close of 68.61 per greenback.
Besides the rupee, foreign fund inflows into the country might get impacted due to “global risk aversion”.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) bought scrips worth Rs 992.18 crore in the last week.
Apart from foreign funds, macro-economic inflation data points such as the consumer price index (CPI) and wholesale price index (WPI) for July will set the tone for the key indices.
Company-wise, Abbott India, Cadila Healthcare, Godrej Industries, Greaves Cotton, Oil India, Tata Chemicals, Tata Steel, Allahabad Bank, GMR Infra, Grasim Industries and Sun Pharma are expected to announce their Q1 earning results next week.
On technical charts, the National Stock Exchange (NSE) Nifty50 remains in an uptrend as it has closed at new life highs.
“Technically, while the Nifty has corrected from life highs, the underlying trend of the Nifty remains up,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.
“The intermediate uptrend is likely to continue once the immediate resistance of 11,495 points is taken out. Crucial supports to watch for any further weakness is at 11,329 points.”
Last week, both the key Indian equity indices — S&P Bombay Stock Exchange (BSE) Sensex and the NSE Nifty 50 — rose on the back of healthy inflow of foreign funds, along with domestic political developments and positive global cues.
Additionally, prediction of healthy economic growth by IMF combined with better-than-expected quarterly results and low crude oil prices aided the two key indices in making substantial gains.
Consequently, the S&P BSE Sensex closed at 37,869.23 points, higher by 313.07 points or 0.82 per cent from its previous close.
The positive sentiment pushed the barometer index to a fresh intra-day record high of 38,076.23 points and a closing high of 38,024.37 points during the trade week ended August 10.
Similarly, the wider Nifty50 on the NSE made gains. It ended at 11,429.50 points, higher by 68.7 points or 0.58 per cent from its previous close.
The Nifty50 made a fresh intra-day record high of 11,495.20 points and closing high of 11,470.70 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
