Image used for representational purpose.
| Photo Credit: Reuters

The rupee appreciated 2 paise to 83.84 against the U.S. dollar in early trade on Tuesday (September 17, 2024), helped by a weak greenback against major crosses overseas and lower crude oil prices in international markets.

However, a sluggish trend in the domestic equities and fresh foreign fund outflows amid U.S. rate cut expectations restricted the rise in the local unit, forex traders said.

At the interbank foreign exchange market, the local unit opened slightly weak at 83.87 but gained some ground to turn positive at 83.84, registering a rise of 2 paise from its previous close.

On Monday, the local unit settled at 83.86 against the U.S. dollar.

“A decline in crude oil prices, (recent) healthy foreign institutional inflows into Indian equities, and speculation about a possible rate cut by the Federal Reserve have stirred hopes of stability. Moreover, the Reserve Bank of India is poised to step in around the crucial 84-mark, likely deploying its reserves to prevent a further slide in the rupee,” said, Amit Pabari, MD, CR Forex Advisors.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.05% to 100.38.

Brent crude, the international benchmark, gained 0.45% to $73.08 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex fell 59.75 points, or 0.07%, to 82,929.03, while the Nifty slipped 4.85 points, or 0.02%, to 25,378.90.

Foreign Institutional Investors (FIIs) turned net sellers in the capital markets on Monday, as they sold shares worth ₹1,634.98 crore, according to exchange data.

Equity benchmark index Sensex rebounded nearly 100 points to hit a lifetime closing high on Monday (September 16, 2024), while the broader Nifty ended just shy of its record peak, propelled by bargain hunting in energy, utility and banking stocks amid sustained foreign fund inflows.

The 30-share BSE Sensex climbed 97.84 points or 0.12% to settle at a new record peak of 82,988.78. During the day, it jumped 293.4 points or 0.35% to hit a fresh lifetime intra-day high of 83,184.34.

The NSE Nifty rose 27.25 points or 0.11% to settle at 25,383.75, over 5 points lower than its previous record. During the day, the benchmark gained 89.2 points or 0.35% to hit a new intra-day high of 25,445.70.

“The domestic market traded in a narrow range with a positive bias as the participants are keenly awaiting the Fed’s decision this week. The weakness in the U.S. job market and benign inflation are pointing at a slew of rate cuts on the table.

“The inflow of foreign money and an expectation of stability in domestic growth may keep sentiment optimistic,” Vinod Nair, Head of Research, Geojit Financial Services, said.

NTPC was the biggest gainer on the Sensex chart, rising 2.44%, followed by JSW Steel, Larsen & Toubro, ICICI Bank, Axis Bank, Nestle, Mahindra & Mahindra and Tata Steel.

Bajaj Finance declined over 3%. Hindustan Unilever, Bajaj Finserv, Adani Port and Asian Paints were the other laggards.

“The Indian markets continued their bullish trend, with Nifty reaching a new record high, driven primarily by foreign institutional investor (FII) buying and a strong market breadth.

“Investors remain cautiously optimistic ahead of the U.S. Federal Reserve’s meeting later this week, which could influence short-term trends. Investors are advised to stay aligned with the current trend but watch for potential market reactions to the U.S. Fed’s policy announcements,” Vikram Kasat, Head – Advisory, PL Capital – Prabhudas Lilladher, said.

In the broader market, the BSE smallcap gauge climbed 0.28% while the midcap index ended marginally up by 0.01%.

Among the indices, utilities jumped 1.97%, power (1.93%), metal (0.65%), capital goods (0.56%), consumer durables (0.49%) and industrials (0.33%).

IT, telecommunication, tech, services and FMCG were the laggards.

In Asian markets, Hong Kong ended with gains. Markets in Japan, mainland China and South Korea were closed for holidays.

European markets were trading mostly higher. The U.S. markets ended in positive territory on Friday (September 13, 2024).

Foreign Institutional Investors (FIIs) bought equities worth ₹2,364.82 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth ₹2,532.18 crore.

Global oil benchmark Brent crude climbed 0.35% to USD 71.90 a barrel.

“Globally equity markets will be focused on the Fed rate action on Wednesday, which is likely to influence the stock market trend in the near-term,” said V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

On Friday (September 13, 2024), the BSE benchmark Sensex fell by 71.77 points or 0.09% to settle at 82,890.94. The NSE Nifty dropped 32.40 points or 0.13% to 25,356.50.

Image used for representational purpose.
| Photo Credit: PTI

Equity benchmark indices rebounded in early trade on Monday (September 16), with the Nifty hitting a fresh all-time high level, amid foreign fund inflows and a rally in the U.S. markets.

The 30-share BSE Sensex climbed 180.92 points to 83,071.86 in early trade. The NSE Nifty went up by 55.1 points to 25,411.60. Later, the NSE benchmark jumped 89.2 points to hit a new record peak of 25,445.70.

Among the 30 Sensex firms, NTPC, Axis Bank, Tata Steel, JSW Steel, Kotak Mahindra Bank, Bajaj Finserv, Larsen & Toubro and Bajaj Finance were the biggest gainers.

Hindustan Unilever, Nestle, ICICI Bank and Tata Consultancy Services were the laggards.

In Asian markets, Shanghai and Hong Kong were trading lower.

The U.S. markets ended in positive territory on Friday.

Foreign Institutional Investors (FIIs) bought equities worth ₹2,364.82 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs) also bought equities worth ₹2,532.18 crore.

Global oil benchmark Brent crude traded 0.07% higher at $71.66 a barrel.

“Globally equity markets will be focused on the Fed rate action on Wednesday which is likely to influence the stock market trend in the near-term,” said V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

On Friday, the BSE benchmark Sensex fell by 71.77 points or 0.09% to settle at 82,890.94. The NSE Nifty dropped 32.40 points or 0.13% to 25,356.50.

Image used for representational purpose only.
| Photo Credit: Reuters

The rupee pared its initial losses and settled for the day on an almost flat note at 83.50 (provisional) against the U.S. dollar on July 4, resisting pressure from elevated crude oil prices.

Forex traders said a positive trend in domestic equities, wherein benchmark indices touched all-time high levels, and significant foreign fund inflows supported the rupee and restricted the fall.

At the interbank foreign exchange market, the local unit opened at 83.52 and hit the intraday high of 83.48 and a low of 83.56 against the American currency during the session.

It finally settled at 83.50 (provisional) against the dollar, 1 paisa lower than its previous close.

On Wednesday, the rupee settled 1 paisa lower at 83.49 against the U.S. dollar.

“We expect the rupee to trade with a slight positive bias on softness in the US dollar amid weak economic data and rise in risk appetite in global markets,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

“However, elevated crude oil prices may limit the gains. Investors may remain cautious ahead of the U.S. non-farm payrolls report tomorrow,” Mr. Choudhary said, adding that $-₹ spot price is expected to trade in a range of ₹83.20 to ₹83.80.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.15% lower at 105.24.

Brent crude futures, the global oil benchmark, were trading 0.47% lower at $86.93 per barrel.

In the domestic equity market, Sensex breached the historic 80,000-mark and Nifty scaled a fresh lifetime high. The 30-share BSE Sensex ended the day 62.87 points, or 0.08%, up at its all-time high of 80,049.67 points. The broader NSE Nifty settled 15.65 points, or 0.06%, higher at a fresh peak of 24,302.15 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, as they purchased shares worth ₹5,483.63 crore, according to exchange data.

Meanwhile, according to an official of S&P Global Ratings, a sovereign rating upgrade for India in the next 24 months is possible if the central government is able to prudently manage its finances and bring down the fiscal deficit to 4% of GDP.

S&P Global Ratings Director, Sovereign Ratings, YeeFarn Phua, said the trigger for an upgrade would be the government (Centre + states) deficit falling below 7 per cent of the GDP, and a lot of this would have to be driven by the central government.