Indian Rupee Closed Higher Trailing Optimistic Regional Currencies

Indian Rupee Closed Higher Trailing Optimistic Regional Currencies

06 Nov 2020 04:54 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee closed at 74.20/74.2, rising for the second consecutive day compared to 74.39/74.40 in the previous session, trailing optimistic regional currencies after the dollar index tumbled by 1% yesterday, to its lowest in two years.
  • The benchmark 5.77% bond maturing in 2030 ended 0.09% lower at 99.24 rupees, yielding 5.87%, against 99.33 rupees and 5.86% yield at the previous close, as sentiment weakened after unenthusiastic demand at the weekly debt auction. The yield fell by one basis point this week.

Indian Equities

  • The benchmark BSE Sensex and NSE index moved up for the fifth straight day to end at 1.34% and 1.18% higher, respectively, trailing positive Asian equities and U.S. index futures amid an increasing likelihood of a divided U.S. Congress and a new president. The Sensex closed at its 10-month high. For the week, the Sensex and the Nifty rose 5.8% and 5.3%, respectively.
  • Reliance Industries and financials HDFC Bank and HDFC were among the top gainers.

Global Markets

  • Most Asian markets rose today after the week’s strong gains with positive market sentiment as the chances of Joe Biden winning the US election increased and after the Federal Reserve indicated it could provide further economic support. Japan's Nikkei average rose 0.9% to a 29-year high while MSCI's broadest gauge of Asian Pacific shares outside Japan rose 0.3%, near a three-year high.
  • European stocks struggle for momentum due to new record number of coronavirus cases in Italy and France and the US election. The CAC 40 was higher by 1.24%, while the DAX was leading the FTSE 100 lower. They were down 0.79% and 0.07% respectively.
  • On Wall Street, the markets advanced as US awaits the presidential election result. The benchmark S&P 500 index jumped 1.9% higher. It is advancing towards its biggest weekly gain since April.
  • Oil prices fell as fresh lockdowns in Europe to contain the coronavirus darkened the outlook for crude demand. Brent crude was down 1.2% at $40.45 a barrel. West Texas Intermediate futures were down 1.3% at $38.27 a barrel.