INR opened strong today at 70.74 against US Dollar. During the day, it strengthened further and closed at 70.56. Further forecast and analysis of INR/USD below:
Increased Selling by Foreign Investors but Increased Net Investment by DII makes up
FII/FPI investors withdrew INR 213.60 crores on 27.09.2019 as per data published by National Stock Exchange. Total buying on Tuesday was reported at INR 3941.44 crores and selling reported at INR 4155.04 Crores. However, domestic institutional investors (DII) net investment was at 458.68 crores. The way market performs in the coming week will have an effect on USD/INR.
Sensex and NIFTY end the Week at Low
Sensex ended today at 38,822.57 down by 0.43% and NIFTY closed at 11,512.40 down by 0.51%. Top performers included Bharti Airtel at 2.89%, Bajaj Finance 2%, Kotak Mahindra Bank 1% and ITC by 1%. Stocks under pressure included India Bulls down by 8%, Yes Bank 5%, Vedanta Limited 5% and Zee Entertainment by 4%. Major volatility expected next week and market is set for further correction. INR/USD will remain volatile depending on how equity market performs this coming week.
Crude Oil to Gain on Global Cues
Easing crude oil prices helped INRs rally against US dollar. Brent Crude fell to 60.32 during the day and ended strongly at 60.53. India’s import of crude oil from Iraq has hit record high for the month of August at 1.32 million barrels per day. This is 29% higher when compared to August 2018. Crude oil prices are likely to appreciate next week on global cues.
End of Trade War?
US President Donald Trump on Wednesday suggested that China is looking for a Trade deal very soon than expected. As per reports, China has bought considerable amount of meat products and soybeans from the US ahead of trade talks scheduled in October. Both countries are looking to sign a mutually beneficially deal to end the 15 month long Trade War.