Rupee Traded Lower After RBI Slashes Repo Rate By 40 Bps

Rupee Traded Lower After RBI Slashes Repo Rate By 40 Bps

22 May 2020 01:20 PM

Financial Market Overview

Indian Rupee

  • The Indian rupee was at 75.8150/75.8250 to the dollar against 75.6050/75.6150 in the previous session after the central bank slashed interest rates by 40 basis points, and tensions between U.S.-China further weighed.
  • The benchmark 6.45% bond maturing in 2029 stayed higher at 103.70 rupees, yielding 5.93%, against 102.94 rupees and 6.03% yield at the previous close, after the country’s rate-setting panel in a surprise move slashed the key policy rate to a record low while hinting at space for more easing going ahead.

Indian Equities

  • Benchmark NSE Nifty50 index was down 113.60 points at 8992.65, while the BSE Sensex was down 385.19 points at 30547.71.
  • Shares of United Spirits (down 3.63 per cent), ITC (down 1.59 per cent) , Godrej Consumer Products (down 0.67 per cent) , Dabur India (down 0.55 per cent) , Nestle India (down 0.5 per cent).

Global Markets

  • The Asian financial hub's benchmark Hang Seng index sank 5% to a seven-week low, pulling MSCI's broadest index of Asia-Pacific shares outside Japan down 2.5%. The CSI300 index of mainland Chinese shares dropped 1.9% while Japan's Nikkei lost 1%.
  • EUROPE'S STOXX 600 down 1.2% BRITAIN'S FTSE 100 down 1.6% FRANCE'S CAC 40 down 1.4%, SPAIN'S IBEX down 1.2% GERMANY'S DAX down 1.5%.
  • E- mini futures for U.S. S&P500 lost 0.8%. Dollar index up at 99.961.
  • Oil prices also tumbled from a two-month peak with U.S. crude futures losing 7.3% to $31.44 per barrel.