Equities continue surge; rupee gains erased on dollar demand

Macroeconomic data announced during the week as well the news of the Prime Minister’s impending meeting on Saturday have been positive for the markets.

Published: 15th September 2018 01:12 AM  |   Last Updated: 15th September 2018 05:55 AM   |  A+A-


Image for representational purpose.(Photo | File/Reuters)

By Express News Service

MUMBAI: Equity markets on Friday continued the momentum from the last trading session on Wednesday, to close higher. BSE Sensex closed the day by almost a percentage higher at 38,090.64 and the Nifty surged 1.28 per cent to 11,515.20. However, BSE Sensex closed 0.8 per cent down for the week and Nifty by 0.6 per cent as currency fears and oil price worries dragged the equities down. Macroeconomic data announced during the week as well the news of the Prime Minister’s impending meeting on Saturday have been positive for the markets.

WPI (Wholesale Price Index) released on Friday showed inflation at 4.53 per cent in August, down from 5.09 per cent in July. “Nifty continued its recovery and reclaimed 11,500 today, thanks to upbeat macroeconomic data and supportive global cues. It opened gap up and gradually moved higher as the session progressed. Mostly, sectoral indices participated in the move wherein realty, metal and pharma pack were the top three gainers respectively,” said Jayant Manglik, president, Religare Broking.

The rupee too recovered to a high of 71.51 against the US dollar during the day, after being battered heavily earlier in the week. But, sustained dollar demand pushed the rupee lower to 71.99 intraday before its close at 71.84. Saturday’s meeting would turn crucial for the rupee next week, as markets look for potential policy measures that can arrest its slide.

“Although we believe there are limited options in the RBI’s policy to insulate the INR from global forces in the near term, the country’s ample forex reserves provide a strong buffer against excessive currency weakness,” said a Barclays Research report. After the recent correction in rupee’s real effective exchange rate, it expects “reduced pressure on the CAD over medium term, especially from domestic sources, barring a surge in government spending, which is unlikely”.

Petrol, diesel rates scale new highs

New Delhi: Petrol and diesel prices on Friday scaled new highs as rates were hiked on account of rupee  depreciation and rise in international oil rates. While petrol price was increased by 28 paise a litre, diesel rates went up by 22 paise, said OMCs.

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