India Rupee Traded Lower On Dollar Demand From Importers; Weak Equities

India Rupee Traded Lower On Dollar Demand From Importers; Weak Equities

30 Mar 2020 01:09 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee fell to 75.48/75.49 to the dollar against 74.85/74.86 in the previous session, as dollar demand from importers and weak local shares added to an early drop due to muted regional cues.
  • The benchmark 6.45% bond maturing in 2029 was at 102.00 rupees, yielding 6.17%, against 102.18 rupees and 6.14% yield at previous close, ahead of heavy supply of papers towards the end of this fiscal year, while trading interest remained low.

Indian Equities

  • The S&P BSE Sensex slumped 857 points, or 2.87 per cent, to 28,960 levels, and the Nifty50 index hovered around 8,430 levels, down 210 points, or 2.6 per cent.
  • HDFC (down 7%) and HDFC Bank (down over 4%) were the top drags on the indices. Besides, Bajaj Finance also slipped over 9 per cent while IndusInd Bank pared some of the losses after plunging 10 per cent in the opening deals.

Global Markets

  • Japan's Nikkei dropped 1.57%, Shanghai blue chips were down 0.94%, and there were sharper drops in Southeast Asia, with Singapore' benchmark index down 2.95%.
  • U.S. and European futures also turned upwards in the Asian afternoon, with E-Mini futures for the S&P 500 up 1.1%, again after earlier losses, EUROSTOXXX 50 futures rallying 2% and FTSE futures 1.5%.
  • Bond investors looked to be bracing for a long haul with yields at the very short end of the Treasury curve turning negative and those on 10-year notes dropping a steep 26 basis points last week to last stand at 0.68%.
  • Brent crude futures lost $1.42 to $23.51 a barrel, while U.S. crude fell 83 cents to $20.67.