Indian Rupee: All Eyes On Budget

1 Feb 2022 , 08:54 AM

The Union Budget that will be presented later during the day is likely to dictate the Indian rupee direction on Tuesday, 01 February 2022. Meanwhile, dollar easing from its recent peaks is expected to support the domestic unit, although higher crude oil prices could restrict gains.

Finance Minister Nirmala Sitharaman will present the Union Budget 2022-23 in the Parliament today, 1 February 2022. The Budget is going paperless this year again with the government concerned about safety issues posed by the spread of the new variant of the coronavirus.

The goods and services tax (GST) collection crossed the Rs 1.30 lakh crore-mark for the fourth time as the government collected Rs 1,38,394 crore in gross GST revenue for January 2022, the finance ministry said on January 31. Revenues for January 2022 were 15% higher than GST revenues in the same month last year and 25% higher than the GST revenues in January 2020, the ministry said.

Back home, benchmark indices ended with strong gains on Monday, tracking positive global cues. The S&P BSE Sensex, surged 813.94 points or 1.42% at 58,014.11. The Nifty 50 index soared 237.9 points or 1.39% at 17,339.25. Foreign portfolio investors (FPIs) sold shares worth Rs 3,624.48 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,648.65 crore in the Indian equity market on 31 January, provisional data showed.

Overseas, Asian stocks are trading higher on Tuesday, tracking stocks on Wall Street as they surged for a second session. Markets in mainland China, Hong Kong, South Korea and Singapore are closed for a holiday. US stocks surged for a second day Monday to wrap up a rough January, as investors snapped up some of the tech shares that have been battered all month.

Meanwhile, dollar nursed its wounds on Tuesday following its biggest drop in nearly three weeks against major peers. The dollar index, which measures the greenback against six rivals was at 96.63. It was at an almost 19-month high of 97.441 at the end of last week, as investors anticipated possibility the Fed could raise rates by 50 basis points in March.

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