Indian Rupee Closed Little Changed On Bets Of RBI Intervention

Indian Rupee Closed Little Changed On Bets Of RBI Intervention

22 Jan 2021 04:58 PM

Financial Market Overview

Indian Rupee

  • Indian Rupee closed little changed at 72.98 compared to 72.99 in the previous session, supported by portfolio inflows and a declining Dollar. However, speculation that the RBI will intervene and stop Rupee from appreciating, kept it in a narrow range. The rupee rose 0.1% this week.
  • The benchmark 5.77% bond maturing in 2030 closed higher at 98.77 rupees, yielding 5.94 compared to 98.65 rupees and 5.96% yield at previous close, as the RBI did not accept any bid for the 10-year 5.85% 2030 bond at auction today.

Indian Equities

  • The NSE Nifty 50 index fell 1.5% to 14,371.90 and the benchmark S&P BSE Sensex fell 1.5% to 48,878.54 on weakness in bank and metals stocks, while investors eyed Reliance Industries' quarterly results.
  • The Nifty auto index was the top index gainer, rising 1.4%, with Bajaj Auto surging 10.4% after strong quarterly results. Reliance Industries fell 2.37% ahead of its December quarter earnings.

Global Markets

  • Asian markets closed lower with shares in Hong Kong leading the region. The Hang Seng was down 1.62% while Japan's Nikkei 225 fell 0.44% and China's Shanghai Composite was down 0.40%.
  • European markets are trading lower with shares in France down the most. The CAC 40 is down 0.67% while Germany's DAX is off 0.63% and London's FTSE 100 fell by 0.54%.
  • U.S. stock futures dropped, signaling a muted start on Wall Street as investors anticipate the economic data releases. The S&P 500 futures fell 0.5%, Nasdaq-100 index futures lost 0.5% and the Dow Jones Industrial Average futures declined 0.6%.
  • Brent crude futures fell 1.2% to $55.41 a barrel while the U.S. crude was 1.4% lower at $52.39 per barrel.