Indian Rupee Traded Weaker Amid Weak Risk Appetite

Indian Rupee Traded Weaker Amid Weak Risk Appetite

18 Jan 2021 01:29 PM

Financial Market Overview

Indian Rupee

  • Indian rupee traded lower at 73.24/73.25 compared to 73.07/73.08 in the previous session, as risk appetite weakened, increasing the appeal of safe-haven dollar.
  • The benchmark 5.77% bond maturing in 2030 was trading higher at 98.60 rupees, yielding 5.96%, compared to 98.42 rupees and 5.99% yield at previous close, as the RBI will resume its note purchases this week.

Indian Equities

  • The benchmark BSE Sensex fell 0.89% and the NSE index declined 0.99%, tracing Asian peers after a sell-off in U.S. equities last week.
  • HDFC, Infosys and ICICI Bank were among the top losers.

Global Markets

  • Asian markets fell following a retreat on Wall Street, but benchmarks in Hong Kong and Shanghai rose after data showed the Chinese economy grew 2.3% in 2020. The Hang Seng in Hong Kong gained 0.5% to 28,712.79 while the Shanghai Composite index climbed 0.7% to 3,591.33 and Tokyo’s Nikkei 225 dropped 1.1% to 28,211.78
  • European stocks are set to open lower, with surging coronavirus cases, deteriorating U.S.-China tensions and China data likely to be in focus. The pan European Stoxx 600 fell 1%, the German DAX lost 1.4%, and France’s CAC 40 index declined 1.2% while the U.K.'s FTSE 100 shed 1%.
  • On Wall Street, the S&P 500 fell 0.7% to 3,768.25, the Dow Jones Industrial Average lost 0.6% to 30,814.26, and the Nasdaq composite dropped 0.9% to 12,998.50.
  • US crude oil lost 43 cents to $51.93 per barrel while the Brent crude shed 53 cents to $54.57 per barrel.