Market Highlights & Commentary:
- Rupee opens weaker at 71.73 as against yesterday’s close of 71.55 and may trade the day mixed between 71.30-71.80 and small chance of 72.00.
- Today RBI meeting (11:45 AM) and possible outcomes on interest rates with Rupee impact is below. Our view is of 25 bp rate cut.
- Status quo and dovish stance- Bonds and Equity to rally and rupee may also gain to levels closer to 71.302.
- Rate cut- Equity may rally but rupee may weaken as bond investor may not get upside. CRR easing and status quo- equities and NBFC to rally. Small gains in rupee In coming week, two imp events:
1. Feb 11 – NCLAT decision on Essar
2. US treasury officials visiting China for trade talks
- In overseas market no major development took place. USD traded moderately stronger against other major rival currencies including EUR and GBP.
- While EUR fell on back of poor manufacturing data, GBP continued to trade under pressure due to Brexit concern.
- U.S trade deficit for Jan-19 narrowed drown to USD 49 Bn from previous USD 55 Bn in Dec-18.
- Oil price remained around 62.50 falling marginally owing to
- This morning most of the asian equities mixed while currencies are flat.