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Uk news Stock Market Today: Nifty and Sensex drop ahead of India’s GDP data, derivatives expiry
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By FXStreet Team
- India’s Nifty and Sensex lengthen the decline on Monday amid cautious global markets.
- Nifty and Sensex clinched weekly gains nevertheless public sector stocks had been a drag on Friday.
- All eyes now remain on US PCE inflation data, India’s Q3 GDP and month-to-month derivatives expiry due later this week.
The Sensex 30 and Nifty 50, India’s key benchmark indices, are extending losses on Monday, taking cautious cues from Asian stock markets. Chance sentiment remains in a weak area so far, as markets weigh renewed tensions between China and Taiwan.
Meanwhile, Indian traders remain wary ahead of India’s third-quarter Base Home Product (GDP) data and the expiry of month-to-month derivatives contracts due later this week.
At the time of writing, the National Stock Exchange (NSE) Nifty 50 and the Bombay Stock Exchange (BSE) Sensex 30 lose nearly 0.50% on the day to trade at 22,109.40 and 72,772.31 respectively.
- On Monday, the top gainers on Nifty are Powergrid, L&T, Adani Ports, Adani Enterprises and Mahindra and Mahindra. Meanwhile, the top losers are Hindalco, Tech Mahindra, Infosys, Asian Paints and Apollo Hospitals.
- Stocks to watch out for: Kotak Mahindra bank, as Zurich Insurance is predicted to purchase a 70% stake in the bank’s general insurance arm for INR 55.60 billion upfront.
- Reliance Industries Company signed a binding pact with Walt Disney to merge their media operations in India, Bloomberg reported citing sources.
- Alembic Pharmaceuticals Company totally resumed its manufacturing operations at the Sikkim plant.
- Sanofi India Company reported a rise in profit in the December quarter, instructed a final dividend of INR117 per share.
- China’s Commerce Ministry said on Monday, “the US falsely claims that China has created ‘overcapacity’, which totally displays the US facet’s unilateralism and hegemonic behavior.”
- Separately, China’s authorities said that the Fujian Coast Guard is boosting patrols in waters near Taiwan’s Kinmen islands “to strengthen law enforcement inspections in key areas.”
- The US stock markets closed flat to decrease on Friday. US stock futures are trading 0.15% decrease on the day, at the press time.
- Last week, Nifty and Sensex traders weighed blended Indian and US preliminary industry PMI data and a hawkish Minutes of the Reserve Bank of India (RBI) February meeting.
- Data published by HSBC Bank confirmed on Thursday that India’s Manufacturing Purchasing Managers’ (PMI) Index dropped from 56.9 in January to 56.7 in February. Meanwhile, the Services and products PMI rose to 62.0 in the same period vs. 61.8 outdated. The Composite PMI stood at 61.5, as against the outdated reading of 61.2.
- In the RBI Minutes, Governor Shaktikanta Das stated that ‘’at this juncture, monetary coverage have to remain vigilant and no longer assume that our job on the inflation front is over. We have to remain dedicated to efficiently navigating the ‘last mile’ of disinflation which can be sticky.”
- S&P Global Manufacturing PMI improved to 51.5 from 50.7 in February, while S&P Global Services and products PMI edged decrease to 51.3 from 52.5.
- Attention now turns toward the US PCE inflation data and India’s Base Home Product (GDP) data due later this week.
- Markets are at reveal pricing in exactly about a 20% chance that the US Federal Reserve (Fed) may initiate easing rates in May, powerful decrease than an over 90% chance a month ago, according to the CME FedWatch Tool. For the June meeting, the probability for a rate in the reduction of now stands at about 70%, down from 77% viewed a few days ago.
Uk news Indian economy FAQs
How does the Indian economy impact the Indian Rupee?
The Indian economy has averaged a growth rate of 6.13% between 2006 and 2023, which makes it one among the fastest rising in the world. India’s excessive growth has attracted a lot of international investment. This includes Overseas Bid Funding (FDI) into physical projects and Overseas Indirect Funding (FII) by international funds into Indian financial markets. The greater the stage of investment, the larger the demand for the Rupee (INR). Fluctuations in Dollar-demand from Indian importers also impact INR.
What is the impact of Oil costs on the Rupee?
India has to import a great deal of its Oil and gasoline so the value of Oil can have a advise impact on the Rupee. Oil is mostly traded in US Dollars (USD) on international markets so if the value of Oil rises, aggregate demand for USD increases and Indian importers have to promote more Rupees to meet that demand, which is depreciative for the Rupee.
How does inflation in India impact the Rupee?
Inflation has a advanced assemble on the Rupee. Ultimately it indicates an increase in money provide which reduces the Rupee’s overall value. Yet if it rises above the Reserve Bank of India’s (RBI) 4% target, the RBI will raise passion rates to disclose it down by decreasing credit ranking. Greater passion rates, especially real rates (the dissimilarity between passion rates and inflation) strengthen the Rupee. They make India a more profitable place for international investors to park their money. A fall in inflation can be supportive of the Rupee. At the same time decrease passion rates can have a depreciatory assemble on the Rupee.
How does seasonal US Dollar demand from importers and banks impact the Rupee?
India has hasten a trade deficit for most of its latest history, indicating its imports outweigh its exports. Since the majority of international trade takes place in US Dollars, there are times – due to seasonal demand or explain glut – the place the excessive volume of imports leads to significant US Dollar- demand. All thru these sessions the Rupee can weaken as it is far heavily equipped to meet the demand for Dollars. When markets trip increased volatility, the demand for US Dollars can also shoot up with a similarly negative assemble on the Rupee.
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