A delay in US Federal Reserve's quantitative easing tapering, coupled with better-than-expected September quarter earnings, ensured FIIs kept foreign money flowing into Indian equities.
As FY20 Budget fiscal measures need to be better understood, a reversal of the stance back to neutral will allow MPC flexibility to respond to incoming data.
Forex dealers said besides increased selling of the American currency by exporters and banks, a higher opening in the domestic equity market and the dollar's weakness against other currencies overseas supported the rupee.
'The market movement will be largely driven by earnings growth.'
Sectorally, metal and banking stocks rallied the most, while FMCG and realty stocks came under selling pressure.
China's CSI300 stock index shed 1.1 per cent, hitting a five-week low, while shares of Hong Kong-listed Chinese companies sagged 0.9 per cent.
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As many as nine respondents said RBI would hold the repo rate at 8% till March-end, 2015
In worldwide trade, the US dollar retreated from its recent multi-year highs to trade subdued against major rival currencies
US interest rate normalisation policy is likely to keep global FX markets volatile.
'We are overweight on India, as it is one of the best in emerging markets (EMs)'
The rupee's plunging to record level and a sharp fall in the equity market are knee-jerk investor reactions to the US Federal Reserve's saying the it will slow down bond-buying programme in view of improving American economy.
India has always been a good bet in relative terms during crises/turbulent times in emerging markets (EMs).
The S&P BSE Midcap and the S&P BSE Smallcap indices under-performed to lose 0.8% and 1.6%
The central bank had revised its inflation forecast significantly downward in the last policy
As global markets near all-time highs driven by liquidity, Marc Faber suggests most asset prices worldwide are inflated.
Conor McGregor said on Tuesday he was retiring from the sport, five months after losing to Khabib Nurmagomedov in a controversial title fight
Amid slowing growth and low interest rates, investors will need to focus on stock-picking, suggests John Remmert.
The Reserve Bank of India kept interest rates on hold at 7.50 per cent.
India is likely to attract increasing notice from global investors.
After hitting a record low of 68.85 to the dollar last week, a Reuters poll suggests the rupee will stabilise at 66 to the dollar by the end of September, while technical charts also point to a period of relative calm.
The second half of June could be driven more or less by technical factors triggered by news flow from Greece, the US Federal Reserve and the monsoon. The technical picture seems bearish as of now, says Devangshu Datta.
RBI likely to cut rate early next year.
This is the highest closing level since May 11, 2016 when the rupee had finished at 66.56
In the broader markets, BSE Midcap index slipped 0.3% whereas the BSE Smallcap index inched up by 0.2%
India Inc is borrowing from global firms as interest rates sky rocket in India.
Former RBI Governor Subbarao blamed Chidambaram for undermining the autonomy of RBI and putting pressure on him to cut interest rates.
The Reserve Bank of India has no plans to cut the short-term repo rate for some time, a senior central bank official said on Thursday.
Increased demand for the dollar from importers put pressure on the rupee.
Aditya Birla Money MD talks about liquidity concerns in the market.
Drop in oil prices and the government's reform agenda has helped India to be out of the Fragile Five group
BSE Midcap and BSE Smallcap indices settled the day 0.7% and 0.9% higher
The dollar index eased 0.05 per cent to 98.69.
India should not be left behind. It should join the seven central banks which are studying feasibility and safeguards necessary to eliminate risks, particularly from hacking, advises former foreign secretary Shyam Saran.
