ONGC was the top gainer which surged over 4% followed by Axis, SBI, CIL
In August, domestic equity markets garnered one of the highest foreign portfolio investor (FPI) flows since the outbreak of the pandemic in 2020, despite the US Federal Reserve standing firm on unwinding its stimulus measures to control inflation. FPIs pumped in over Rs 51,000 crore ($6.4 billion) in August, the most since December 2020 and the third-highest tally since March 2020-the month the Covid-19 pandemic roiled global markets. This was the second consecutive month of positive foreign flows. In the preceding nine months, FPIs had yanked out over $32 billion or Rs 2.2 trillion.
Since March 31, 2022, the PSBs' market cap has risen 43.7 per cent, from Rs. 7.29 trillion to Rs. 10.47 trillion. It's time for the government, the majority owner of public sector banks, to reap the benefit of the rally in bank stocks, recommends Tamal Bandyopadhyay.
A sustained rise in equity market also boosted the rupee sentiment.
Rebalance your portfolio in case it has become overweight on equities vis-a-vis your strategic asset allocation.
Sharp fall in domestic stock market also affected the rupee sentiment.
Adequate dollar supply gave a boost to the local currency
The rupee continued to slide against the pound sterling and finished at 102.64 as against 102.25 previously.
The rupee recovered by three paise to close at 67.65 on fresh selling of dollars by banks and exporters amidst a recovery in equities.
The rupee has dropped by 83 paise or 1.24 per cent in three days
The surprise decision of OPEC and its allies, including Russia, to cut oil output may cause an immediate rise in prices, delaying revision in fuel prices in India, industry sources said. The grouping of Organisation of Petroleum Exporting Countries (OPEC) and its allies, called OPEC+, on Sunday decided to further cut oil output by around 1.16 million barrels. The move led to Brent rising by almost 6 per cent to $84.58 per barrel on Monday.
The domestic currency has dropped 40 paise or 0.60 per cent in two days
The primary and immediate impact of a depreciating rupee is on the importers who will have to shell out more for the same quantity and price. However, it is a boon for the exporters as they receive more rupees in exchange for dollars. The rupee depreciation has wiped away some of the gains that would have accrued to India from international oil and fuel prices dropping to pre-Ukraine war levels.
Consistent capital inflows and a recovery in local equities helped the local unit to trim initial losses
A massive rally in domestic equities along with smooth supply of dollars on the back sustained capital inflows into equities and debt predominantly helped the upmove
After another day of volatile trade, the rupee today appreciated by seven paise to close at a new one-month high of 59.04 against the dollar as the RBI's liquidity-tightening measures continued to lend support.
Good foreign capital inflows failed to restrict the rupee's fall against the dollar
Given the economic trends, it might make sense to allocate some savings to gold.
In February, FPIs sold $421 mn in debt; in March they have sold $133 mn so far
Healthy demand for the American unit from importers and corporate weighed on the rupee
The rupee on Monday ended lower by 23 paise to close at an over two-week low of 67.31 against the US currency.
'Just the amount of work which is there just to become more and more successful in banking. For this to happen you need to have leaders who understand technology.'
Hoard cash. There will be plenty of time and opportunity at far lower levels, warns Sonali Ranade in her weekly Market Notes
The Indian rupee was off to a bad start in the new year as it suffered the worst single-day drop in over two weeks today by falling 32 paise to end at 63.35 against the US dollar.
Markets
Weakness of dollar in the global markets and foreign capital outflows also affected the rupee sentiment.
Falling for the fourth day in succession, the rupee today dipped by 23 paise to close at nearly three-week low of 59.38 against the dollar amidst the RBI announcing an SLR cut that is expected to release nearly Rs 40,000 crore into markets.
Heavy selling of the US dollar by banks and exporters in the face of renewed capital inflows predominantly kept sentiment highly buoyant
Just because India has outperformed the US markets in a short recent period, it does not mean that this is based on fundamental reasons that are here to stay, points out Debashis Basu.
The Indian currency had appreciated by a whopping 85 paise in three-day surge
Small- and mid-cap stocks continued facing selling pressure due to stretched valuations.
A steep decline in the Asian equities after crude oil fell to its lowest since September 2003 dented sentiments.
There's sustained demand for the American currency from importers and banks
The gains were capped due to month-end dollar demand from importers, mainly oil firms
There was fresh selling of the American currency by banks and exporters
Sustained dollar unwinding from exporters and banks amid weak overseas trend gave a boost to the rupee
Even the persistent rise in equity market failed to restrict the rupee's fall.
Seven consecutive sessions of decline in the equity market has eroded the wealth of investors by a whopping Rs 10.42 lakh crore and the benchmark Sensex has tumbled more than 2,000 points during this period. Concerns over more rate hikes by developed economies, weak global equity markets and fresh foreign fund outflows from the domestic market have dented investor sentiments. On Monday, the BSE Sensex dropped 175.58 points or 0.30 per cent to end at 59,288.35 points, marking a decline for seven straight trading sessions.
This has steered a rally in global equities and dollar Index also ticked higher, trading near its four year high.
Bullish dollar sentiment overseas alongside sluggish domestic equity market predominantly impacted the domestic currency
