Market Highlights & Commentary:
- INR opens weaker at 71.59 as against last week close of 71.24 and may trade the day between 71.40-71.75 under to way price action. A close above 71.70/71.75, could
open up levels closer to 72+. The main reason for weaker opening is solid jobs data from US (304K); crude drifting higher. Since most other currencies have weakened, we don’t ascribe budget related concerns as main reason
- Going forward, the chances of rate cut by Rbi has reduced..but still there.
- Oil prices are marginally up but below 62 levels at 61.87 level.
- This week market focus will be on speeches by key members of Fed to get latest insight on Fed future plans. Also Bank of England will gather later in the week for its periodic monetary policy review where it is likely to leave interest rate unchanged.
- This week Chinese market will remain close on account of Chinese new year.
- This morning most of the Asian equities green while currencies are weak.