Indian Rupee Closed Lower on Doubts Over Near-Term Economic Revival

Indian Rupee Closed Lower on Doubts Over Near-Term Economic Revival

14 Jul 2020 04:35 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was at 75.4150/75.4250 to the dollar against 75.19/75.20 in the previous session, as new containment measures in some parts of the world to prevent the coronavirus spread cast doubts over a near-term economic revival. The unit fell 0.3% today, its biggest single-session decline since Jul. 7.
  • The benchmark 5.79% bond maturing in 2030 ended at 99.73 rupees, yielding 5.83%, against 100.02 rupees and a 5.79% yield at the previous close, as June retail inflation breaching the central bank’s tolerance ceiling dampened hopes of sharp policy rate cuts going ahead.

Indian Equities

  • The broader NSE Nifty 50 index closed down 1.81% at 10,607.35 and the benchmark S&P BSE Sensex ended 1.8% lower at 36,033.06, dragged by losses in banking and auto stocks.
  • Banking and financial stocks fell for a third session as worries mount over bad debt and a loan repayment moratorium that threatens to hurt revenue. The Nifty banking closed down 3.16%, while the financial index ended 2.45% lower.

Global Markets

  • MSCI's All-Country World Index edged down 0.4%, after touching a 20-week high on Monday. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9%. Chinese stocks were down despite better-than-expected trade numbers. The U.S. dollar firmed marginally.
  • The pan-European STOXX 600 opened 1.5% lower and was heading for its worst day in 14 sessions after technology stocks dropped 3.4%.
  • S&P 500 futures were 0.5% stronger after the index lost 0.9% on Monday.
  • U.S. crude futures fell 1.5% to $39.52 per barrel and Brent futures fell 1.3% to $42.16 per barrel.