The 30-share BSE index rose 147.89 points to close at 81,053.19, registering gains for the third day in a row. 
| Photo Credit: Reuters

Benchmark Sensex and Nifty edged up in volatile trade on Friday (August 23, 2024) following buying in blue-chip stocks such as ICICI Bank and Bharti Airtel amid mixed global trends ahead of the U.S. Fed chair’s speech at the Jackson Hole Symposium.

Rising for the fourth straight session, the 30-share Bombay Stock Exchange (BSE) Sensex ended 33.02 points, or 0.04% higher at 81,086.21.

In early trade, the benchmark declined 169.93 points, or 0.20%, to a low of 80,883.26. Later, it bounced back 178.3 points, or 0.21%, to hit a high of 81,231.49, but gave up gains towards the end.

The National Stock Exchange (NSE) Nifty edged up 11.65 points, or 0.05%, to close at 24,823.15, registering gains for the seventh session in a row.

From the Sensex pack, Tata Motors, Sun Pharmaceutical, Bharti Airtel, Bajaj Finserv, ICICI Bank, Mahindra & Mahindra and JSW Steel were the gainers.

Tech Mahindra, HCL Technologies, Asian Paints, Titan, Infosys, the State Bank of India, Tata Consultancy Services and HDFC Bank were the laggards.

“Ahead of FED Chair Powell’s speech, the Indian indices oscillated around the flat trajectory and mixed global market sentiments further catalysed this scenario,” Vinod Nair, Head of Research at Geojit Financial Services said.

“Investors are exercising caution and awaiting Mr. Powell’s signals for more insights on the interest rate path,” Mr. Nair added.

European markets were trading with significant gains in the mid-session deals, while Asian markets were mixed. The US stock markets closed lower in overnight trade on Thursday (August 22, 2024).

Foreign Institutional Investors (FIIs) bought equities worth ₹1,371.79 crore on Thursday (August 22, 2024), according to exchange data. Domestic institutional investors (DIIs) again bought equities worth ₹2,971.80 crore on Thursday.

Global oil benchmark Brent crude rose 1.01% to $78 a barrel. On Thursday (August 22, 2024), the 30-share BSE index rose 147.89 points to close at 81,053.19, registering gains for the third day in a row. Extending gains to a sixth session in a row, the NSE Nifty went up by 41.30 points to end at a two-week high of 24,811.50.

According to RBI Governor Shaktikanta Das, the current policy rate of 6.5% is broadly balanced, and any justification for policy easing at this juncture can be misleading. File
| Photo Credit: The Hindu

The rupee traded in a narrow range and settled higher by 4 paise at 83.89 (provisional) against the American currency on Friday (August 23, 2024), as traders remained cautious ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium.

Forex traders said the weak U.S. dollar, foreign fund inflows and a positive tone in the domestic markets supported the rupee. However, overnight gains in crude oil prices capped sharp gains.

At the interbank foreign exchange market, the local unit opened weak at 83.93 and touched an intraday high of 83.85 against the U.S. dollar. The domestic currency finally settled at 83.89 (provisional), 4 paise higher than its previous close.

On Thursday (August 22, 2024), the rupee traded in a narrow range and settled lower by 3 paise at 83.93 against the American currency.

“We expect the rupee to trade with a slight negative bias as traders remain cautious ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium, which could provide some cues on the Fed’s path to cut interest rates.

“Weak US and Asian markets and a recovery in crude oil prices may pressure the rupee, while positive domestic markets may support the rupee at lower levels,” said Anuj Choudhary, research analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.10% lower at 101.40.

Brent crude, the global oil benchmark, advanced 1.05% to $78.03 per barrel.

On the domestic equity market, Sensex advanced 33.02 points, or 0.04%, to close at 81,086.21 points. The Nifty rose 11.65 points, or 0.05%, to 24,823.15 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Thursday (August 22, 2024) as they purchased shares worth ₹1,371.79 crore, according to exchange data.

On the domestic macroeconomic front, the minutes of the last Monetary Policy Committee (MPC) released by the Reserve Bank of India (RBI) on Thursday (August 22, 2024) noted that the calibrated increase in policy repo rate by 250 basis points since May 2022 and subsequent change of stance to the withdrawal of accommodation have facilitated gradual disinflation over 2022–23.

According to RBI Governor Shaktikanta Das, the current policy rate of 6.5% is broadly balanced, and any justification for policy easing at this juncture can be misleading.

Representational image.
| Photo Credit: AFP

Rupee traded in a narrow range and appreciated 5 paise to 83.88 against the US dollar in morning trade on Friday (August 23, 2024) supported by easing crude oil prices and fresh foreign fund inflows.

Forex traders said significant correction in oil prices, which is hovering around USD 77 per barrel, is a major positive for the rupee, given India’s substantial oil imports.

At the interbank foreign exchange market, the local unit opened at 83.93 and then gained ground and touched 83.88, registering a rise of 5 paise from its previous close.

On Thursday, the rupee traded in a narrow range and settled lower by 3 paise at 83.93 against the American currency.

“Despite the dollar index reaching a recent low, the Indian rupee remains steadfast, showing little signs of strengthening. This resilience can be attributed to the central bank’s deliberate interventions, aimed at stabilizing the USDINR around the 83.90-95 range,” CR Forex Advisors MD-Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.15 per cent to 101.35 points.

Brent crude, the global oil benchmark, was 0.12 per cent up at USD 77.31 per barrel in futures trade, “In the near term, the rupee is expected to trade within a narrow range, with an upside limit around 83.80 and support around 84.00,” Pabari added.

The domestic equity market witnessed heavy volatility in morning trade, the 30-share BSE Sensex which opened on a positive note was later trading 13.2 points, or 0.02 per cent down, at 81,039.99 points.

The Nifty also witnessed similar movement, it opened on a higher note, but soon pared the gains to trade 8.25 points, or 0.03 per cent lower at 24,803.25 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth Rs 1,371.79 crore, according to exchange data.

On the domestic macroeconomic front, the minutes of the last Monetary Policy Committee (MPC) released by the RBI on Thursday noted that the calibrated increase in policy repo rate by 250 basis points since May 2022 and subsequent change of stance to the withdrawal of accommodation have facilitated gradual disinflation over 2022-23.

According to Reserve Bank Governor Shaktikanta Das, the current policy rate of 6.5 per cent is broadly balanced, and any justification for policy easing at this juncture can be misleading.

 Forex traders said foreign fund inflows and possible intervention by the RBI supported the rupee at lower levels and restricted the downfall. File
| Photo Credit: Reuters

The rupee recovered from its all-time low level and appreciated by 5 paise to 83.65 against the US dollar in early trade on July 22, as the American currency retreated from its elevated level.

Forex traders said foreign fund inflows and possible intervention by the Reserve Bank of India (RBI) supported the rupee at lower levels and restricted the downfall.

At the interbank foreign exchange market, the Indian rupee opened at 83.66, and touched an early high of 83.65, registering a gain of 5 paise from its previous close.

On Friday, the rupee depreciated 7 paise to settle at its all-time low of 83.70 against the US dollar.

“A weakening dollar — prompted by shifts in the macroeconomic landscape and emerging cracks in US economic data — caused the dollar index to dip to 104. This scenario saw emerging market currencies rising against the dollar,” CR Forex Advisors MD Amit Pabari said. However, despite these rupee-supporting factors, the Indian currency hasn’t appreciated significantly, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.29, lower by 0.10%.

Brent crude futures, the global oil benchmark, rose 0.69% to $83.20 per barrel.

On the macroeconomic front, India’s forex reserves jumped by $9.699 billion to an all-time high of $666.854 billion for the week ended July 12, the RBI said on July 19.

In the previous reporting week, the kitty had increased by $5.158 billion to $657.155 billion, surpassing the previous high of $655.817 billion for the week ended June 7.

“This increase (in forex reserves) suggests that the RBI is actively preventing the Rupee from strengthening, even in the face of significant inflows into the equity and debt markets,” Mr. Pabari said.

In the domestic equity market, the 30-share BSE Sensex was trading 264.92 points, or 0.33% lower at 80,339.73 points. The broader NSE Nifty was down 88.10 points, or 0.36%, to 24,442.80 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹1,506.12 crore, according to exchange data.

The rupee continued its downward movement for the second straight day and fell by 8 paise to 83.21 against the US dollar in early trade on Tuesday, September 26, 2023 amid massive selling by foreign equity investors and a firm American currency.

Subdued equity market sentiment and elevated level of crude oil prices ¬ hovering above USD 92 a barrel ¬ also put downside pressure on the Indian currency, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.19 and hit the lowest level of 83.23 against the greenback. It later traded at 83.21 against the dollar, registering a fall of 8 paise from its previous close.

On Monday, the rupee declined by 19 paise to close at 83.13 against the dollar.

Analysts attributed the downward movement of the rupee to a strengthening dollar amid increased month-end demand of the American currency by importers and rising US Treasury yield.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05 per cent to 106.07.

Brent crude futures, the global oil benchmark, was trading 0.45 per cent to USD 92.87 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 15.76 points or 0.02 per cent lower at 66,007.93 points. The broader NSE Nifty declined 10.55 points or 0.05 per cent to 19,664.00.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹2,333.03 crore, according to exchange data.

In the previous reporting week, the overall reserves had risen by $708 million to $602.161 billion.
| Photo Credit: REUTERS

India’s forex reserves dropped by $7.273 billion to $594.888 billion for the week ended August 18, the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had risen by $708 million to $602.161 billion.

The country’s forex kitty had reached an all-time high of $645 billion in October 2021. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.

For the week ended August 18, the foreign currency assets, a major component of the reserves, decreased by $6.613 billion to $527.786 billion, according to the Weekly Statistical Supplement released by the RBI.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-U.S. units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves were down by $515 million to $43.824 billion, the RBI said.

The Special Drawing Rights (SDRs) were down by $119 million to $18.205 billion, the apex bank said.

The country’s reserve position with the IMF was also down by $25 million to $5.072 billion in the reporting week, the apex bank data showed.