on Monday, the rupee ended lower by 4 paise.
Markets in countries whose economic fortunes were closely linked to China's growth tumbled.
'From a risk-return perspective, large-cap funds may generate lower-than-historical average returns in 2024, whereas mid-, and small-cap funds hardly have any upside left.'
The local currency had lost 119 paise in the past five sessions on rising worries over current account gap and fears that withdrawal of US stimulus will hit inflows from overseas.
It has mostly been a one-way street for markets that have moved up sharply since July. The front-line indices - the S&P BSE Sensex and the Nifty50 - have gained 6.7 per cent and 7.3 per cent, respectively, in the past three months. The rally in mid- and small-caps has been sharper, with both indices surging 14 per cent and 9 per cent, respectively, during this period. This sharp run has made analysts at Jefferies cautious.
Rupee rises against the dollar for 4th straight session.
Beijing did not announce expected policy support over the weekend
The rupee recovered by 13 paise to close at 66.31 per dollar on fresh selling of dollars by banks and exporters despite fall in equity market.
With the first quarter earnings season coming to an end, the domestic equity markets would be driven by global trends and trading activity of foreign investors this week, analysts said. The movement of global oil benchmark Brent crude and the rupee against the dollar would also drive trends in the market. "Macroeconomic indicators, trends in global stock markets and FII activities will be pivotal in shaping market trends in the coming days," Pravesh Gour, senior technical analyst at Swastika Investmart Ltd, said.
Recovering from early losses, the rupee on Friday ended marginally higher at 64.81 against the US dollar.
The rally in the stock market and the recent appreciation in rupee have brought 51 new members to the elite billion-dollar market-value club, while doubling its overall valuation since October when the benchmark index had dropped below the 8,000-level.
The rupee ended steady against the American currency at 66.19 per dollar at the Interbank Foreign Exchange here today in view of steady dollar in the overseas market.
The dollar index eased 0.05 per cent to 98.69.
On Friday, the rupee had lost 6 paise.
The rupee had strengthened by 19 paise on Monday.
The rupee had lost 11 paise to close at 66.44 against the dollar.
The rupee had ended 12 paise higher at 63.70 on Monday.
Forex dealers said besides the dollar gaining against other currencies in the global markets on the back of a strong US economy, increased demand for the American unit from importers weighed on the rupee but a higher opening in the domestic equity markets, capped the fall.
The local currency had gained five paise to close at 66.35 in Monday's trade.
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
A weakening dollar against other currencies overseas supported the rupee.
Dr Reddy's was the top gainer in the Sensex pack, rising over 3 per cent, followed by PowerGrid, TCS, HCL Tech, Infosys and Reliance Industries. On the other hand, L&T, IndusInd Bank, Bajaj Finserv and Bharti Airtel were among the laggards.
The rupee fell because of fresh demand for dollar from importers.
The RBI fixed the reference rate for the dollar at 65.2525 and for the euro at 72.1954.
Concerns related to capital outflows in the aftermath of the first US interest rate hike in nearly a decade predominantly weighed on the rupee trade.
On Tuesday, the rupee had declined marginally by 3 paise to 66.03.
We have not yet internalised the need for reliability in our schema to emerge as an industrial society, says Sonali Ranade
Equity markets this week will be largely guided by trends in global stocks, foreign funds' trading activity and progress of monsoon, analysts said. Investors will also track the movement of rupee against the US dollar and crude oil prices. Benchmark indices Sensex and Nifty closed at fresh lifetime highs on Friday.
The Indian rupee had lost 10 paise to close at 64 on Thursday.
This is the biggest one-day fall in the rupee since August 3, 2016
A lower opening of the domestic equity market put pressure on the rupee.
On Wednesday, the rupee ended barely steady at 64.93.
Rupee weakened by 10 paise to end at 66.14 against the dollar due to month-end demand from importers and banks.
The rupee had hit a record low of 68.85 in August 2013.
At interactions last week with senior officials from the Reserve Bank of India, select banks gave feedback on two key bond market concerns, namely, recent volatility in the rupee-dollar exchange rate and heavy losses incurred on floating rate government bonds due to a demand-supply mismatch, sources told Business Standard. The discussions were held ahead of the RBI's next monetary policy statement, scheduled on August 5. Indian banks are large holders of government securities because of a regulatory mandate to set aside a certain percentage of deposits in sovereign bonds.
The Wall Street major Morgan Stanley has upgraded India to "standout overweight" citing that the relative economic and earnings growth is improving and the macro-stability setup looks sufficient to withstand the higher real rate environment. "India remains standout overweight. "We increase our overweight stance on Indian equities and as our most-preferred emerging market," the brokerage said in a note on Friday.
This is rupee's lowest since 62.32 on January 9.
The rupee closed almost flat at 65.76 against the US dollar on some demand for the American currency from banks.
The rupee had advanced 7 paise to end at 65.51 on Thursday.
On Tuesday, the rupee closed lower by 13 paise at 67.27.
