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New RBI chief drives expectations; indices on winning streak
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SME Times News Bureau | 15 Dec, 2018
Expectation of lower interest rates with further liquidity infusion by
the Reserve Bank of India (RBI) under its new chief, along with healthy
macro-economic data points, drove the key equity indices forward.
Initially,
Indian equity market opened on dismal note, but a sharp bounce back
after the five state Assembly election results drove the S&P BSE
Sensex and the NSE Nifty50 to their fourth straight session of gains.
"While
the resignation (of RBI Governor Urjit Patel) took the market by
surprise, leading to concerns over the independence of RBI as an
institution, the quick announcement of the appointment of the new
Governor (Shaktikanta Das) has helped allay these fears," said Shibani
Kurian, Senior Vice President, Head of Equity Research, Kotak Mahindra
Asset Management.
The new Governor, former senior bureaucrat Shaktikanta Das, is seen close to the present dispensation at the Centre.
Another
key theme of the week was normalisation of Brent Crude oil price to
around $60 after a short-term upward mobility due to OPEC production cut
announcement.
"Crude oil production cut by OPEC was below
expectation which had sparked a short-term volatility, but normalised
subsequently. Also, US inventories have gone down this week," Anuj
Gupta, Deputy Vice President - Research, Commodities and Forex, Angel
Broking, told IANS.
"We expect the (crude) prices will increase now as the actual affect of the production cut will start to show from January."
However,
towards the end of the week, advances were capped across the globe as
growth concerns grew after China, the world's second-largest economy,
reported slowing retail growth.
Consequently, global equity markets ended the week on a negative note.
In
terms of investments, foreign institutional investors (FIIs) were net
sellers during the review as they off-loaded a total of Rs 2,067.19
crore worth of shares, while domestic institutional investors (DIIs)
sold scrips worth Rs 153.21 crore, provisional data from the BSE showed.
Index-wise,
the S&P BSE Sensex gained 289.68 points, or 0.81 per cent, to close
at 35,962.93 points, whereas the 50-share NSE Nifty advanced 111.75
points, or 1.04 per cent, to settle at 10,805.45 points.
Similarly,
the local currency also gained in the past week. The rupee strengthened
by 1.1 to 71.90 against the US dollar from its previous week's close of
70.80.
According to HDFC Securities' Retail Research Head Deepak
Jasani: "Technically, with the Nifty rallying higher for the fourth
consecutive session, the bulls remain in control. Further upsides are
likely in the coming week once the immediate resistances of 10,941
points are taken out."
"Crucial supports to watch for any weakness are at 10,588 points."
On
a weekly basis, the top gainers on the BSE and the NSE were Yes Bank
and Hero Moto Corp which gained over 8 per cent each, followed by ONGC,
SBI, Bharti Airtel and Mahindra and Mahindra, which gained in the range
of 4 to 5 per cent.
In contrast, HDFC lost 2.46 per cent, the
most during the week. It was followed by Kotak Mahindra Bank, Reliance
Industries, Adani Ports and HDFC Bank.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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