Indian Rupee: Positive Domestic Macros Likely To Support

1 Sep 2022 , 09:25 AM

The Indian rupee is expected to come under pressure, weighed by strength in dollar overseas, although sustained buying by foreign investors in Indian markets could support the local unit. Improving data is also likely to aid rupee sentiments. On the macro front, Indias GDP growth surged to 13.5% in April-June from 4.1% in the previous quarter, data released on August 31 by the Ministry of Statistics and Programme Implementation showed. The sharp uptick in growth was driven by a favourable base effect and the ongoing economic revival. Indias eight core sectors grew 4.5% in July, slowing from an upwardly revised 13.2% in June, the commerce ministry said on August 31. Output in six of the eight core sectors grew in July. These sectors include coal, refinery products, electricity, fertilisers, cement and steel, said the ministry. On Tuesday, rupee rebounded by 47 paise to close at 79.44 against the US dollar. At the interbank forex market, the local unit opened at 79.92 against the greenback. It witnessed an intra-day high of 79.44 and a low of 79.92 against the American currency during the session. It finally ended at 79.44 against the US dollar, up 47 paise from its previous close of 79.91. In the previous session, the rupee depreciated 7 paise to close at 79.91 against the American dollar. The rupee fell to its all-time low of 80.15 against the US dollar in intra-day trade. Domestic equity benchmarks rallied on Tuesday, tracking positive global cues. The barometer index, the S&P BSE Sensex, jumped 1,564.45 points or 2.70% to 59,537.07. The Nifty 50 index added 446.40 points or 2.58% to 17,759.30. Stock markets remain closed on Wednesday, 31 August 2022 on account of Ganesh Chaturthi. Foreign portfolio investors (FPIs) bought shares worth Rs 4,165.86 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 656.72 crore in the Indian equity market on 30 August, provisional data showed. Overseas, Asian stocks are trading lower Thursday on concerns about aggressive rate hikes from global policymakers. U.S. stocks ended lower on Wednesday as worries about aggressive interest rate hikes from the Federal Reserve persist. Powered by Commodity Insights