GET Stock QuotesNews18 APP
News18 English
»
1-min read

Choppy Equity Markets to Induce Volatility in Indian Rupee

Global cues and massive outflow of foreign funds from the country's capital markets are expected to induce volatility in the Indian rupee next week.

IANS

Updated:August 26, 2017, 9:16 PM IST
facebookTwittergoogleskypewhatsapp
Choppy Equity Markets to Induce Volatility in Indian Rupee
Representative photo (Reuters)
Loading...
Mumbai: Global cues and massive outflow of foreign funds from the country's capital markets are expected to induce volatility in the Indian rupee next week.

"Short-term volatility can be high as stock market remains choppy. Next week, traders will focus on US jobs data," Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.

Last week, key equity indices closed on a flat-to-positive note on the back of short covering and influx of domestic funds.

Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE rose by 71.38 points or 0.99 percent to 31,596.06 points.

The NSE Nifty50 inched-up by just 19.65 points or 0.2 per cent to close the week's trade at 9,857.05 points.

At the same time, the foreign institutional investors (FIIs) sold stocks worth Rs 4,666.53 crore between August 21 and 24, provisional data from the stock exchanges showed.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 5,281.52 crore, or $824.17 million, during the trade week ended August 24.

Banerjee, however, added: "We have been a bear on USD since the early part of February and continue to be so. We expect rupee to continue to trade strong against US dollar over the medium to long term."

According to Hariprasad MP, Senior Vice President and Head Treasury at Centrum Direct, the Indian rupee is expected to remain in the range of 64-64.50 per US dollar.

"Over the past nine months, the rupee has been moving in a narrow range and has been substantially appreciating. The government wants to restrain the higher trajectory of the rupee to keep manufacturers happy but recent developments do not indicate a positive trend," Hariprasad said.

"India has sufficient forex reserves. The RBI (Reserve Bank of India) is likely to intervene only if the rupee exceeds the 64.50 per USD levels."
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Reliance 1,101.30 -4.34
Indiabulls Hsg 653.80 -17.10
Dewan Housing 210.55 -10.75
Yes Bank 217.90 -6.04
Bajaj Finance 2,140.50 -0.47
Company Price Change %Gain
Sudarshan Chem 385.05 2.64
Indiabulls Hsg 654.25 -17.06
Reliance 1,101.65 -4.11
Dewan Housing 211.80 -10.37
Yes Bank 217.70 -6.06
Top Gainers
Company Price Change %Gain
ITC 289.45 1.05
HUL 1,578.40 1.05
Kotak Mahindra 1,198.95 1.95
HPCL 215.90 4.15
Wipro 323.15 0.00
Company Price Change %Gain
Sun Pharma 608.40 2.52
Kotak Mahindra 1,199.55 1.83
Vedanta 211.15 1.51
HUL 1,579.20 1.16
ITC 288.45 0.73
Top Losers
Company Price Change %Gain
Indiabulls Hsg 653.80 -17.10
Yes Bank 217.90 -6.04
Bajaj Finance 2,140.50 -0.47
Hero Motocorp 2,712.75 -3.38
BPCL 283.55 -0.56
Company Price Change %Gain
Yes Bank 217.70 -6.06
HDFC 1,661.30 -4.32
Reliance 1,101.65 -4.11
Hero Motocorp 2,711.00 -3.70
Infosys 682.60 -3.11

Live TV

Loading...
Loading...