Tag Archives: Indian rupee

Indian debt market has witnessed a better inflow!

Indian debt market has witnessed a better inflow with foreign institutional investors pumping in a record Rs 1, 12,469 crore ($18.6 billion) in the debt market till date in 2014.

With RBI governor Raghuram Rajan’s main focus now on containing inflation, bond dealers do not see any immediate cut in key policy rates which could have directly brought down the benchmark yield on the 10-year government securities from the current level of about 8.50%.

Bond market players expect that given strong demand for gilts form FIIs, the government may now increase the $25-billion limit and bring down the limit for corporate bonds. If that happens as more FIIs rush to buy gilts, prices will rise and yields will soften

Market Outlook

The Indian rupee appreciated over 6% in the beginning of 2014 due to huge foreign investment in the country’s debt and equity market. This rally was led on the hopes of a strong and stable government to revive the Indian economy. However the trend for the INR has reversed in last 2 months. The risk factors for the Indian rupee include high inflation, Middle East crisis, low percentage of forex reserves/external debt, and Fed tapering.

The foreign investors have high expectations from the ruling government. If these expectations are not met, then the Indian rupee is likely to depreciate further. Talk of volatility in the currency market and issues surrounding capital flows are back. The Indian rupee depreciated over 3% against the US dollar between 2 July and 6 August.

Last year, Indian markets witnessed high volatility after the Fed indicated for the first time that it will reduce the quantum of asset purchase, popularly referred to as tapering. Foreign investors sold Indian assets (equity and debt) worth over $12.5 billion in three months to August. Experts are of the view that markets may be subjected to volatility as the US central bank ends its asset purchase programme, but it will not be at the same scale as witnessed last year.

Indian rupee has witnessed some volatility and inflows from foreign investors in the equity markets have slowed, while the debt market has seen net selling in the current month. It is always difficult to prejudge the extent and timing of the way policy decisions will affect global financial markets and to what extent Indian markets will be affected.

However, irrespective of the way things pan out in the global financial markets, investors in India will draw comfort from the fact that compared to last year, fundamentals have improved and the outlook on Indian markets is positive.

Read detail report here:- http://www.rrfinance.com/reserch/pdf/other-pdf/Debt_Fortnightly.pdf

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Filed under Commodity News, Currency Update, Debt News, Finance, World News

Indian rupee rallied to an eight-month high!

The Indian rupee rallied to en eight-month high, boosted by continued foreign fund inflows into domestic shares, but suspected dollar purchases by the central bank prevented the currency from gaining much further. The RBI has long been expected to start buying dollars when the rupee strengthens to add to foreign exchange reserves of $297.29 billion-the highest since late December 2011. The central bank’s Dollar purchases would reflect the strength of a rupee rally. The RBI had to regularly buy the domestic currency just about half a year ago to keep it from hitting record lows.INR CurrencyToday’s Headlines

1) India’s Rupee Climbs to Eight-Month High on Election Optimism
2) Aussie Rises to 4-Month High; Franc Falls
3) Pound Advances against Euro as Weale Says Rates Should Increase
4) Gold Trades above Five-Week Low as Ukraine, Weighed

Read detail analysis report: – http://www.rrfinance.com/reserch/MorningBell/Cr_MorningBell.pdf

Related article:http://www.financialexpress.com/news/indian-central-bank-starts-buying-us-dollars-halts-indian-rupee-rally/1236032

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Banking, auto stocks edge higher!

Key benchmark indices further pared intraday gains and hit fresh intraday low in early afternoon trade. Two-wheeler stocks rose on expectations of pickup in sales during the upcoming festive season and on hopes good rains this year will boost rural sales. Bank stocks gained across the board. The market breadth, indicating the overall health of the market, was positive. The BSE Sensex was 10.50 points up at 19743.26 & The CNX Nifty was 2.60 points up at 5853.20. The Indian Rupee was 1.29% strong against USD.

Strides Arcolab

Strides Arcolab (Photo credit: Wikipedia)

Who Moved and Why

  1. L&T gains after winning orders
  2. SSWL jumps after bagging export order
  3. Two-wheeler makers in demand
  4. Strides Arcolab slides after receiving warning letter from USFDA
  5. Ranbaxy Labs slumps after FDA import alert
  6. PSU OMCs gain after petrol price hike
  7. Infosystems rallies on merger talks with HCL

Read detail analysis report here: – http://www.rrfinance.com/Reserch/Pdf/07-July/Mid%20Session/16th_Sept_Mid%20Session%20Update.pdf

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Nifty hits fresh 6-1/2 week high

Key benchmark indices saw divergent trend in a highly volatile session of trade. Strong rupee aided recovery on the bourses in late trade. The barometer index, the S&P BSE Sensex, turned positive to regain the psychological 20,000 level in late trade only to provisionally settle below that level. The market breadth, indicating the overall health of the market, was positive. The BSE Sensex closed 0.36 points up at 19997.45 & The CNX Nifty closed 16.40 points up at 5913.15. The Indian Rupee was 0.51% strong against USD.

English: Graph showing Indian rupee and U.S. d...

English: Graph showing Indian rupee and U.S. dollar exchange rate from January, 1990. (Photo credit: Wikipedia)

Who Moved and Why

1) KEC International gains after securing new orders
2) Volumes jump at Gujarat Automotive Gears counter
3) Eros International Media firmly in the picture
4) Sadbhav Engg gains as it emerges as successful bidder for 2 projects
5) Cairn India drops along with crude oil price
6) HCL Tech scales record high
7) Geometric spurts on equity investment in Anark Corp
8) HOEC spurts 15.5% in 3 days
9) Aban Offshore drops ex-dividend

For detail analysis report please visit: – http://rrfinance.com/Reserch/Pdf/07-July/DMR/11th_Sept_equity_closing_update.pdf

Related articles

Rupee hits 3-week high of 63.19; Sensex falters (profit.ndtv.com)

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Weekly Market Review – India’s Gross Domestic Product (GDP) grew!

India’s Gross Domestic Product (GDP) grew at a slower than expected rate of 4.4% for the first quarter of the current financial year. The economy grew at the slowest quarterly rate since the global financial crisis. The growth was contracted by a contraction in mining and manufacturing. The agricultural sector of the economy grew at 2.7% versus 1.7% QoQ. Manufacturing sector growth contracted at (-) 1.2%. While the trade and hotels growth cue in at 3.9% versus 6.2% QoQ, the construction sector grew at 2.8% versus 4.4% QoQ. Electricity & gas sector grew at 3.7% versus 2.8% QoQ. Mining sector growth contracted at (-) 2.8% versus (-) 3.1 QoQ.

The Indian economy has been steadily losing momentum in recent years. Economic growth virtually halved in two years to 5 percent in the fiscal year that ended in March — the lowest level in a decade. The industrial sector contracted in the first quarter, the 1.1% fall in the index of industrial production showed. The decline in the purchasing managers’ index for services in the first quarter indicates a widening of the slowdown to services sector that expanded 6.5% last year.

Weekly Technical View

USD-INR

The week gone by saw the USD/INR pair continuing to surge higher. The rise seen this week was the highest seen in recent times as the pair touched new life highs. Technical indicators are reflecting the positive price action as the pair trades above the 13-day SMA and momentum readings like the 14 -day RSI are climbing higher. We recommend using any weakness to enter into longs.

Weekly Technical View

EUR-INR

The week gone by saw the EUR/INR pair continuing to surge higher. The rise seen this week was the highest seen in recent times as the pair touched new life highs. The pair has also broken above the upper band of the 20-day Bollinger Bands, which is another bullish signal for the pair. We recommend using any weakness to enter into longs.

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The rupee fell to a record low on Tuesday!

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The rupee fell to a record low on Tuesday, raising prospects for fresh measures to bolster a currency which has tumbled more than 12 percent since the start of May, but later pared its losses after the appointment of a new reform-oriented central bank governor. INR hits life low of 61.80; cbank steps in to sell dlrs Raghuram Rajan’s appointment as RBI chief also cheers mkt.

RR Financial Consultants‘s insight:

Today’s Headlines

1) Dollar Advances Versus Yen Amid Fed Outlook; Aussie Jumps
2) Mexico Leader Said to Seek Changes to Break Oil Monopoly
3) Bernanke Seeking Animal Spirits Channels Yellen Spouse Akerlof
4) Americans With Best Credit in Decades Drive U.S. Economy
5) Korean Won Falls as Importers Seen Buying Dollars; Bonds Advance
6) Brazil Real Falls to Four-Year Low, Spurring Inflation Concern

For detail analysis report please visit: – http://www.rrfinance.com/reserch/MorningBell/Cr_MorningBell.pdf

Also find information about stock market, stock brokers, share market, share brokers, FD Rates, Fixed Income, How to save tax, INR vs Dollar, Fixed Deposits, Bonds and Debentures, Online Share Trading, IPO India, Tax Saving Schemes, Company Fixed Deposis, Fixed Income Calculator. Visit:- http://www.rrfinance.com/Fixed_Income/FixedDeposit.aspx

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Currency Market Outlook – The Indian rupee came to High!

See on Scoop.itShare Brokers in India

The Indian rupee came off near two-week highs to close lower on Monday, ending a two-day winning streak, as corporate inflows and a strong domestic stock market was outweighed by a late surge in dollar demand from oil importers. Dealers cite inflows related to Unilever’s open offer for Indian unit foreigners bought $189.15 million of shares on Fri, provisional data shows.

RR Financial Consultants‘s insight:

Today’s Headlines

1- Yen Falls as Japan Manufacturers’ Optimism Rises; Krona Advances

2- Bernanke-Draghi Policies MIT Lessons Fischer Says of His Pupils

3- Gilts Drop on Manufacturing, Housing Data; Carney Takes Over BOE

4- U.K. Lenders See Share of Global Banking Profit Fall by Half

5- Macquarie Set for Profit Gain as Australian Dollar Weakens

6- Yuan Rises a Second Day on Easing Cash Crunch, Manufacturing

For detail analysis report please visit: – http://www.rrfinance.com/reserch/MorningBell/Cr_MorningBell.pdf

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English: New Symbol for Indian Rupee

English: New Symbol for Indian Rupee (Photo credit: Wikipedia)

Articles about Indian rupee! Indian rupee snaps two sessions of gains; late surge in importer dlr demand (xe.com)

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