Rupee Closed Higher On Hopes Of A Pickup In Economic Activity

Rupee Closed Higher On Hopes Of A Pickup In Economic Activity

26 May 2020 04:33 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was at 75.66/75.67 to the dollar at 2:00 p.m., against 75.95/75.96 in the previous session, as hopes of a likely pick-up in economic activity due to easing lockdown restrictions in some economies drove appetite for risk assets. The unit rose 0.38% today, its biggest single-session rise since Apr. 30.
  • The benchmark 6.45% bond maturing in 2029 ended at 103.36 rupees, yielding 5.97%, against 103.46 rupees and 5.96% yield at the previous close, as investors booked profits after the benchmark yield fell to an 11-year low in the previous session, while traders continued to anticipate open market bond purchases.

Indian Equities

  • The S&P BSE Sensex slipped 63.29 points (0.21 per cent) to end at 30,609.30, while the broader Nifty 50 settled at 9,029.05, down 10.20 points (0.11 per cent).
  • Gains on Tuesday were led by Titan Company, Ultratech Cement, IndusInd Bank, Nestle India, ITC and NTPC. On the other hand, Bharti Airtel, Tata Consultancy Services (TCS) and Bajaj Finance.

Global Markets

  • Asian markets closed sharply higher today with shares in Japan leading the region. The Nikkei 225 is up 2.55% while Hong Kong's Hang Seng is up 1.96% and China's Shanghai Composite is up 1.01%.
  • European markets are broadly higher today with shares in London leading the region. The FTSE 100 is up 1.23% while France's CAC 40 is up 1.15% and Germany's DAX is up 0.64%.
  • Yields on U.S. 10-year notes were trading at 0.67% after rising to 0.68% last week, when the market absorbed a wave of new issuance.
  • Brent crude futures rose 71 cents to $36.24 a barrel. U.S. crude gained $1.14 to $34.39.