Indian Rupee Closed Weaker For 2 Straight Days Amid RBI Intervention

Indian Rupee Closed Weaker For 2 Straight Days Amid RBI Intervention

03 Dec 2020 04:52 PM

Financial Market Overview

Indian Rupee

  • Indian rupee closed weaker for the second consecutive session at 73.90/73.91, compared to 73.80/ 73.81 in the previous session, pulled down by persistent dollar buying by some state-run banks, likely for the RBI to absorb portfolio flows.
  • The benchmark 5.77% bond maturing in 2030 ended lower at 98.81 rupees, yielding 5.93%, compared to 98.89 rupees, yielding 5.92%, at previous close, as investors awaited the rate-setting panel’s decision tomorrow, amid expectations of unchanged rates.

Indian Equities

  • The benchmark BSE Sensex and NSE index ended 0.03% and 0.15% higher, respectively, as market sentiment turned positive after advancements on coronavirus vaccine, and ahead of Monetary Policy Committee’s decision tomorrow.
  • Maruti, Asian Paints and State Bank of India were among the top gainers, while HDFC Bank led the losses.

Global Markets

  • Asian equities were mixed after a rough day of Wall Street trade amid disappointing U.S. jobs report. Nikkei 225 was up 8.39, or 0.03%, to 26,809.37. The Shanghai Composite lost 0.21% while the Hong Kong Hang Seng closed up 0.7% after the strong service-sector economic report in China.
  • European equities were lower after gains spurred by advances in coronavirus vaccine, but data across Europe underscored the economic damage. Markets kept an eye on talks between Britain and the European Union on a trade deal. The European STOXX index was flat, dragged down by a 0.2% drop in Frankfurt and Paris blue chips. The FTSE 100 hit June highs.
  • U.S. stock futures swayed ahead of economic data which is expected to provide insights into the health of the services sector and the labor market. S&P 500 futures were relatively flat, a day after the broad-market index inched up to close at another all-time high. Nasdaq-100 futures rose 0.2%.
  • Brent crude was down 9 cents at $48.16 a barrel while U.S. light crude eased 14 cents to $45.14.barrel.