India Rupee Traded Lower On Suspected RBI Intervention

India Rupee Traded Lower On Suspected RBI Intervention

06 Jul 2020 01:28 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee turned lower against the dollar and was at 74.7750/74.7850 versus 74.6300/74.6400 in the previous session on dollar purchases by state-run banks, likely on behalf of the central bank.
  • The benchmark 5.79% bond maturing in 2030 was at 99.63 rupees, yielding 5.84%, against 99.58 rupees and 5.85% yield at the previous close, in anticipation of more bond-supportive steps form the central bank.

Indian Equities

  • The S&P BSE Sensex gained 540 points to 36,560 levels and the Nifty50 index was testing the 10,800-mark.
  • Among individual stocks, HDFC Bank climbed 3 per cent on the BSE after the bank gave its first quarter (Q1FY21) business update. The stock was also the top Sensex gainer. Besides, IndusInd Bank (up 2%) and ITC and Bajaj Finance (both up 1%) also gained.

Global Markets

  • Eyes were on Chinese blue chips which jumped 5.4%on top of a 7% gain last week, to their loftiest level in five years. Even Japan's Nikkei, which has lagged with a soft domestic economy, managed a rise of 1.8%.
  • EUROSTOXX 50 futures were trading up 2.3% and FTSE futures 1.5%, while E-Mini futures for the S&P 500 firmed 1.1%.
  • Major currencies have been largely rangebound with the dollar index at 96.930 having spent an entire month in a snug band of 95.714 to 97.808.
  • Oil prices were mixed with Brent crude futures up 30 cents at $43.10 a barrel, while U.S. crude eased 14 cents to $40.51 amid worries the surge in U.S. coronavirus cases would curb fuel demand.