The rupee opened higher by nine paise at 66.79/$ as against the previous close of 66.88/$.
Asian markets opened in the green after days of consolidation as markets seem set to bounce back from oversold territory.
The event line up of US elections in early November & the Fed rate outlook seems to be getting mostly priced in as markets discount the uncertainty.
The major concern of bond yields rising in the US may still be the only imponderable market will have to grapple with going forward. Select outperformance in emerging markets continues to be the theme of 2016 with Ibovespa the Brazilian stock index hitting fresh new 52 week highs.
Nifty broke 8550 with adventurous shorts forcing new recent lows & hitting sentiment in an oversold market. However given the recent improvement in macro's this sell off could be the chance most investors who missed the summer rally to buy stocks. Big corporate deleveraging, low inflation, revival in capital expansion & bond yields at the lowest in 7 years coupled with stable rupee all add up to Indian economy in top shape.
With global uncertainty now seemingly getting mostly priced in we expect November to see Nifty heading back to recent highs after the earnings & US elections play out.
On the political front, the GST council is slated to begin today. RBI minutes of monetary policy meet will be released today.
Wall Street closed modestly lower on Monday. The Dow Jones industrial average fell 51.98 points, or 0.29% to 18,086.4, the S&P 500 lost 6.48 points, or 0.3% to 2,126.5 and the Nasdaq Composite dropped 14.34 points, or 0.27% to 5,199.82.
In forex markets, major currencies were confined in broad trading ranges on the back of soggy US data and the absence of fresh triggers. Gold price rose, partly lifted by steady flows into exchange-traded funds and a dip in the dollar after touching seven-month highs. Federal Reserve Vice Chairman Stanley Fischer said weak productivity, aging population and slow foreign economic growth are holding back interest rates. US industrial output meanwhile rose marginally in September. Oil prices remain at higher levels.
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