Reserve Bank of India's stated foreign exchange policy has been to only curb extreme volatility
At the interbank forex market, the local unit opened at 74.83 against the US dollar and gained further ground to settle at 74.78, up 12 paise over its previous close of 74.90.
Shares of mid-tier IT company KPIT Technologies hit an upper circuit with 5 per cent gain on Tuesday morning amid a weakness among the stocks of its top-tier peers.
Earlier, the local currency on Friday closed with a marginal 3 paise gain at 74.81 to the US dollar amid weakness in the greenback against key global peers.
Among the three, Infosys stood out. Its reported revenue dropped by 2.4% sequentially to $ 3,121 million in the June quarter while its two peers recorded a steeper drop of over 7%.
Quantum Asset Management Co. also recommends avoiding higher-risk India credit because the world’s-biggest lockdown has significantly weakened the debt-servicing capacity of many companies
‘IT stocks will benefit from any weakness in the rupee’
The latest withdrawal has come after investment of Rs 24,053 crore by FPIs in domestic markets in June.
‘Gold has really proven its value as a safe haven in the first half of 2020’
Here is a weekly tracker of returns from Sensex, 10-year government bond yield and US dollar vis-a-vis Indian rupee.
The portfolio inflows have done little to arrest the decline in the rupee.
Globally, gold prices edged up on Tuesday after notching a more than one-month high in the previous session.
‘The leadership that Reliance has gained will continue for some more time’
MOSL expects rupee to quote in the range of 75.80 and 76.40 for the day.
At 10.08 am, the rupee was down 19 paise at 75.7850 against the US dollar. It had opened at 75.80, compared with a previous close of 75.59.
On the domestic front, market participants will be keeping an eye on inflation and industrial production number that will be released later this week.
Policy makers are leaving no stone unturned to help NBFCs overcome the credit crisis.
The euro was at $1.2025, down 0.3% and retreating from three-month highs.
For the day, MOSL expects the rupee (Spot) to quote in the range of 74.80 and 75.25.
Revenue for the Jan-Mar quarter grew just 4.5% to Rs 8,635 crore from Rs 8,260 crore a year earlier.
“For the day, we expect the rupee (Spot) to quote in the range of 75.40 and 76.20,” MOSL said.
India has a comfortable foreign exchange reserves of $487 billion currently.
The dollar index, which measures the strength of the US dollar against a basket of six currencies, dropped 0.12 per cent.
On the domestic front, market participants are awaiting for an announcement from the finance minister on the stimulus package to support MSMEs.
Re is the worst performer in emerging Asia this quarter and that’s because RBI is mopping up dollar, analysts say.
“We expect the rupee (Spot) to quote in the range of 75.50 and 76.50,” brokerage firm Motilal Oswal Financial Services said in a report.
US Treasury bonds yields fell modestly morning after weekly applications for unemployment benefits surged to an all-time high.
The rupee has hit a new low and the outlook for the near term remains bleak despite weak crude oil prices. Some analysts expect it to drop as low as 80 against the US dollar. Is it possible? How long will this pain last and which sectors will get hit the most. Take a look:Where can a weak rupee hurt the most?
Continued fund outflow could disturb the overall sentiment in the market as it is not only restricted to the equity segment but also the debt segment.
According to the executive vice president of HDFC Bank, when fear takes over, it is very difficult to say what level will hold and it is very difficult to take any position.
The domestic unit depreciated nearly 80 paise to record low of 75.02 per dollar against the previous close of 74.23.
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The central bank is estimated to have sold about $1.5 billion, one of the largest interventions lately, four people with direct knowledge of the matter told ET.
In the current month so far, FPIs have pulled out a whopping Rs 37,954 crore (USD 5.14 billion) from Indian capital markets.
In the current month so far, FPIs have pulled out a whopping Rs 33,163 crore (USD 4.46 billion) from Indian capital markets.
At the interbank foreign exchange market, the local currency opened at 73.99. During the day, it moved northward, though briefly, to touch a high of 73.85.
Rupee finally settled at 71.74, lower by 12 paise against its previous close.
On Friday, the rupee had settled at 69.58 against the US dollar.
The acceptance of Indian currency is good news for Indian tourists as earlier they lost a sizeable amount due to exchange rates.
The 10-year government bond yield was at 6.34 per cent in morning trade.
The Mexican peso has taken the top slot, gaining 1.2 per cent against the greenback.
The domestic unit continued to trade in a narrow range on Thursday but came under pressure in the latter half of the session following the release of weaker-than-expected economic data.
“Today, USDINR pair is expected to quote in the range of 71.05 and 71.50,” Motilal Oswal Financial Services said.
In the Union Budget, the Finance Minister announced that the fiscal deficit for the current fiscal year could widen to 3.8 per cent compared to previous estimates of 3.3 per cent.
Weaker greenback overseas and easing crude oil prices helped the rupee restrict its losses to some extent.
Kotak Institutional Equities maintained ‘Reduce’ rating on TCS with a fair value of Rs 2020. However, it said that TCS is a must have in the portfolio at the right valuation. Edelweiss Securities maintained ‘Hold’ rating on the stock with a target price of Rs 2,175. “The stock’s expensive valuation (22.9x FY21E EPS) compels us to retain ‘Hold’,” the brokerage house said.
The commerce department has proposed giving rupee credit to exporters at around 7.5% rate of interest and dollar-denominated loans at around 3.5% under the proposed scheme. It will soon take a proposal to the cabinet.
The biggest shockwave was a rise in crude oil prices as Brent crude shot up by more than $3 per barrel.
Gold prices fell by Rs 80 to Rs 40,554 per 10 gram
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A strengthening domestic equity market supported the rupee, dealers said.
The 30-share BSE index zoomed 634.61 points or 1.55 per cent to close at 41,452.35. During the day, it jumped 664.38 points to 41,482.12.
IT major Infosys snapped a three-session losing streak and added over a per cent during the day.
The advance-decline ratio leaned heavily in favour of the buyers on BSE on Thursday.
The company may report healthy order wins in an otherwise seasonally weak quarter.
London has overtaken Mumbai to become the top center for trading the rupee
The move was a step in the right direction to help traders hedge their bets on the domestic front, said dealers.
Analysts said large IT companies benefit from a weaker rupee
Rupee is trading in a narrow range amid lack of directional cues from the global market.
The domestic unit settled 14 paise up at 71.22 per dollar on Wednesday.
Nifty on Tuesday ended Calendar 2019 below the 12,200 mark.
Rupee may strengthen to 67 per dollar by end-June, a level last seen in the same month last year, said Qi Gao.
Manav Chopra of IB Ventures asked investors to avoid leveraged positions in high-beta stocks.
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 504.13 crore on Thursday, data available with NSE suggested.
Here’s breaking down the pre-market actions.
strength in the dollar against its major crosses could keep gains capped in the rupee.
USDINR pair is expected to quote in the range of 70.90 and 71.25: MOFSL
Prices at one of India’s biggest wholesale markets may plunge to about Rs 20-25 per kilogram from mid-Jan.
A stronger dollar in overseas markets after solid US economic data had weighed on the rupee sentiment in early trade, forex traders said.
Forex traders said the rupee ended the day in the negative territory after inflows related to Essar steel got completed.
Reserves rose by $2.34 billion during the week under review.
Since the leadership of the RBI has changed we have seen more monetary easing, says Wood.
Speaking in the Upper House, Finance Minister Nirmala Sitharaman said the authority would also be responsible for regulating any other IFSC centre which comes up in the country in future as well. She was responding to Congress member Jairam Ramesh who said the authority has been set up to just cater to one centre in Gandhinagar.
Benchmark bond yield gained five basis points to close at 6.76 per cent on Wednesday.
The rupee's rise was also supported by weaker dollar against key global currencies.
The MPC revised down real GDP growth for 2019-20 from 6.1% in October policy to 5%.
The government needs a healthier shadow banking sector as it tries to boost economic growth.
As per Panasonic India’s latest regulatory filings with the Registrar of Companies (RoC) accessed through business intelligence platform Veratech Intelligence, revenue from operation dropped 10.6% year on year in 2018-19 at Rs 4,758.62 crore, while its net loss more than tripled at Rs 459.58 crore against Rs 131.88 crore in FY18.
Forex traders said, the domestic unit is trading in a narrow range ahead of the RBI monetary policy decision on Thursday.
The Indian unit on Friday had closed at 71.74 against the US dollar.
Signs of progress in the US -China trade dispute is adding to confidence.
Forex traders said month-end dollar demand from importers and uncertainty over the US-China trade talks also weighed on the domestic currency.
The last few years has not been very good for the Indian IT industry. Growth has tapered.
If the numbers come in at around 4.5% as widely predicted, it will be the slowest pace since Q4 of 2013.
Fresh trade concerns after China said it was ready to take firm counter-measures against the US which passed a law supporting Hong Kong protestors also weighed on the domestic currency.
Moody's expects GDP growth to slow to 6.6 per cent in 2020, weaker than previous years.
Forex traders said the rupee appreciated for the second straight day on foreign inflows in primary as well as secondary equity market.
The rupee gain was further strengthened by weakening of dollar against the key rival currencies.
The new framework is valid from November 14, 2019 to November 13, 2022.
The revision, it said, became "inevitable as the high-frequency data now suggests that the agency's estimate of 2QFY20 GDP growth coming in a little higher than 5 per cent is unlikely to hold".
30-share index settled 0.22% higher at 39,215.64 and Nifty ended 0.21% up at 11,687.50
Rupee finally settled at 71.74, registering a loss of 3 paise over its previous close.
The purchase took place as the company lowered its revenue growth guidance to 15-20%.
Forex traders said Indian rupee gained taking cues from the higher Asian currencies.
Rival bourse BSE launched trading in interest rate options based on government securities in August.
Forex traders said the rupee received a leg-up after China said it will strive to reach 'phase one' trade deal with the US.
Dollar index, that gauges greenback's strength against a basket of 6 currencies, dropped 0.23%.
A weak trend at the domestic equity markets and global trade tensions also kept sentiment subdued.
AIIB may invest $400 million each in the two metro projects. In Bangalore, it has decided to invest $350 million. AIIB is in advanced talks with different nodal agencies, including Chennai Metro Rail and the Mumbai Metro Rail Corp. The investment is likely to boost New Delhi's Smar City initiative.
Forex traders said the rupee consolidated in a narrow range following lack of cues on the domestic as well as the global front.