iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Indian Rupee: Likely To See Some Recovery

2 Feb 2022 , 09:02 AM

The Indian rupee could likely recover in opening trades on Wednesday, 02 February 2022 as investors come into consensus with the Budget presented by the Union Budget yesterday. Besides, positive global market cues and weakness in the dollar overseas could also aid sentiments. However, rising crude oil prices could restrict gains in the local unit.

On Tuesday, rupee pared its initial gains and settled 17 paise lower at 74.82 against US dollar. At the interbank foreign exchange, the rupee opened at 74.53 against the American dollar, witnessed an intra-day high of 74.41 and a low of 74.87 against the greenback. The local unit finally ended the day at 74.82, 17 paise lower than its previous close of 74.65.

Investors cheered the union budget 2022-23 with its higher capital expenditure and thrust on infra. The governments focus on boosting manufacturing as well as an underlined emphasis on areas such as startups, modern mobility and clean energy, boosted investors sentiment. However, higher-than-expected borrowing in the next financial year weighed on rupee sentiments.

The total Market Borrowings of the government for 2022-23 are estimated to stand at Rs. 11,58,719 crore. The Revised Estimates for 2021-22 are Rs. 8, 75,771 crore as against the Budget Estimates of Rs. 9, 67,708 crore. The 10-year 6.54 GS 2032 bond yield ended at 6.82%, up from its previous close of 6.67% per cent. The current years fiscal deficit was revised up to 6.9 per cent from 6.8 per cent projected earlier. In the current fiscal, the government has borrowed Rs 10.47 trillion from the market, as per the revised estimate (against Rs 12.05 trillion budgeted). Further, the govt said fiscal deficit in 2021-22 will be 6.9 per cent of GDP and 6.4 per cent in 2022-23, and this also weighed on sentiments.

Domestic benchmark indices ended a volatile session with robust gains on Tuesday. The barometer index, the S&P BSE Sensex, was up 848.40 points or 1.46% to 58,862.57. The Nifty 50 index advanced 237 points or 1.37% to 17,576.85. Foreign portfolio investors (FPIs) sold shares worth Rs 21.79 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,597.70 crore in the Indian equity market on 1 February, provisional data showed.

Overseas, Asian stocks are trading higher on Wednesday, with multiple major markets in Asia remaining closed for the Lunar New Year holidays. Markets in mainland China, Hong Kong, Singapore and South Korea are closed on Wednesday for the Lunar New Year holidays. US stocks rose for a third day Tuesday, as Wall Street tried to recover its footing after a wild January. Bank stocks led the market higher.

Meanwhile, dollar was carrying a couple of bruises on Wednesday. The dollar index eased to 96.27 and off its recent 19-month high of 97.441.

Powered by Commodity Insights

Related Tags

  • capital market
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.