Indian Rupee Traded Weaker Amid Dollar Purchases By State Banks

Indian Rupee Traded Weaker Amid Dollar Purchases By State Banks

09 Nov 2020 01:43 PM

Financial Market Overview

 Indian Rupee

  • The rupee was trading at the day's low of 74.02 compared to 74.20 on Friday as state-run banks' dollar purchases on behalf of the central bank, offset the impact of a positive risk appetite.
  • The benchmark 5.77% bond maturing in 2030 was trading 0.02% lower at 99.22 rupees, yielding 5.88%, against 99.24 rupees and 5.87% yield at the previous close, as traders await fresh cues after weaker-than-expected demand at the debt auction on Friday.

Indian Equities

  • The benchmark BSE Sensex and NSE index were trading 1.04% and 1.01% higher, respectively, as U.S. President-elect Joe Biden’s victory boosted Asian markets and U.S. equity futures.
  • Reliance Industries led the gains on media reports that a mega deal with Saudi Aramco was gaining momentum. ICICI Bank and technology giant Infosys were also among the gainers.

 Global Markets

  • Asian shares rose on relief that the US presidential election results were finally decided, with Joe Biden the president-elect. Strong Chinese trade data released over the weekend also helped. Trade tensions are expected to de-escalate under a Biden presidency. Japan’s Nikkei 225 surged 1.9%. Hong Kong’s Hang Seng rose 1.3%, while the Shanghai Composite was up 1.2%.
  • European stock markets headed for a strong open over 1%, amid hopes that US-EU relations will improve once Joe Biden enters the Oval Office in January. The UK’s FTSE 100 is on track to hit its highest level in over three weeks with a rise of 1.27% while the EUROSTOXX was up by 1.51%.
  • The S&P 500 inched lower 0.1% to 3,509.44, leaving its gain for the week at 7.3%. The Dow Jones Industrial Average slipped 0.2%, to 28,323.40 while the Nasdaq composite rose less than 0.1%, to 11,895.23.
  • U.S. benchmark crude gained $1.01 to $38.15 a barrel while Brent crude rose $1.02 to $40.47 a barrel.