On a weekly basis, Indian Rupee hit an eleven month high and appreciated around 2.5 percent. The currency appreciated on the back of victory for Bharatiya Janata Party (BJP) which sweeps the election results.
Further, sustained inflow of dollars into equities which led to upside in the domestic market sentiments acted as a positive factor. Selling of dollars by corporate companies and exporters along with optimistic wholesale inflation data from the country continued with positive movement in the Indian Rupee.
However, sharp upside in the currency was capped due to estimates of dollar buying by the Reserve Bank of India (RBI) and dollar demand from oil importers.
Also, unfavorable retail inflation data and decline in industrial production restricted positive movement in the currency. The Indian Rupee touched a weekly high of 58.57 and closed at same levels on Friday.
For the month of April 2014, FII inflows totaled at Rs.9423.60 crores ($1573.38 million) as on 16th May 2014. Year to date basis, net capital inflows stood at Rs.41221.60 crores ($6818.30 million) as on 16th May 2014.
From the intra-day perspective, we expect Indian Rupee to trade on a positive note on the back of victory for BJP with a majority in general election results which was declared last week coupled with selling of dollars by exporters and corporate companies.
However, sharp upside in the currency will be capped or reversal can be seen due to dollar demand from oil importers and central bank.
www.punjiniveshonline.com
Further, sustained inflow of dollars into equities which led to upside in the domestic market sentiments acted as a positive factor. Selling of dollars by corporate companies and exporters along with optimistic wholesale inflation data from the country continued with positive movement in the Indian Rupee.
However, sharp upside in the currency was capped due to estimates of dollar buying by the Reserve Bank of India (RBI) and dollar demand from oil importers.
Also, unfavorable retail inflation data and decline in industrial production restricted positive movement in the currency. The Indian Rupee touched a weekly high of 58.57 and closed at same levels on Friday.
For the month of April 2014, FII inflows totaled at Rs.9423.60 crores ($1573.38 million) as on 16th May 2014. Year to date basis, net capital inflows stood at Rs.41221.60 crores ($6818.30 million) as on 16th May 2014.
From the intra-day perspective, we expect Indian Rupee to trade on a positive note on the back of victory for BJP with a majority in general election results which was declared last week coupled with selling of dollars by exporters and corporate companies.
However, sharp upside in the currency will be capped or reversal can be seen due to dollar demand from oil importers and central bank.
www.punjiniveshonline.com
No comments:
Post a Comment