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  • Rupee advances 22 paise to 76.78 against US dollar in early trade

    Rupee advances 22 paise to 76.78

    The rupee advanced 22 paise to 76.78 against the US dollar in the opening trade on Wednesday, supported by the weakness in the American dollar and recovery in domestic equity markets.

    Forex traders said the rupee could remain range-bound and can witness high volatility amid the deepening Russia-Ukraine conflict.

    At the interbank foreign exchange, the rupee opened at 76.90 against the US dollar, then gained momentum and touched 76.78, registering a gain of 22 paise from the previous close.

    On Tuesday, the rupee fell for the fifth consecutive day and depreciated by 7 paise to close at a lifetime low of 77 against the US dollar, weighed by surging crude oil prices.

    The Indian rupee could remain range-bound this Wednesday and will continue to witness high volatility, said Sriram Iyer, senior research analyst at Reliance Securities.

    The dollar fell, while a recovery in the domestic equity markets could cap weakness. However, oil continued to move higher after the US ban on Russian energy products and could cap the appreciation bias, Iyer noted.

    Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.05 per cent to 99.01.

    Meanwhile, global oil benchmark Brent crude futures jumped 2.59 per cent to USD 131.29 per barrel.

    On the domestic equity market front, the 30-share Sensex was trading 550.95 points or 1.03 per cent higher at 53,975.04, while the broader NSE Nifty rose 117.70 points, or 0.74 per cent, to 16,131.15.

    Foreign institutional investors remained net sellers in the capital market on Tuesday as they offloaded shares worth Rs 8,142.60 crore, as per stock exchange data.

  • Rupee plummets 76 paise to 76.93/USD as oil soars amid Ukraine crisis

    Sliding for the fourth straight session, the rupee tanked 76 paise to close at 76.93 on Monday, after touching its lifetime low of 77 against the US dollar, as crude oil prices climbed to multi-year highs amid the Russia-Ukraine crisis.

    Global oil prices soared past USD 120 per barrel amid the US and European nations mulling a ban on Russian energy imports.

    Sustained foreign fund outflows and a lacklustre trend in domestic equities also weighed on investor sentiment, forex traders said.

    At the interbank foreign exchange market, the rupee opened at 76.85 against the American currency and slumped to an all-time low of 77, before closing at 76.93, down 76 paise from the previous close.

    “The Indian rupee has plummeted to a lifetime low against the US dollar as the deepening Russia-Ukraine conflict has sapped risk appetite in the market while prompting safe-haven flows into the US dollar,” said Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking Ltd.

    Besides, the parabolic rise in crude oil prices towards multi-year highs and spiralling commodity prices are fuelling inflationary risks, which is a key headwind for the rupee-dollar exchange rate, Sachdeva added.

    According to Sachdeva, the overall trend for the Indian rupee is skewed towards the downside and a convincing close below 77 “would pave the way for further downside towards 77.50 mark in near term, while we envisage the local currency to test the 79 mark from a medium-term perspective.”

    Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.46 per cent higher at 99.09.

    Global oil benchmark Brent crude futures jumped 6.55 per cent to USD 125.85 per barrel.

    On the domestic equity market front, the 30-share Sensex ended 1,491.06 points or 2.74 per cent lower at 52,842.75, while the broader NSE Nifty plunged 382.20 points or 2.35 per cent to 15,863.15.

  • Forex reserves jump by $2.76 bn to $632.95 bn: RBI data

    The country’s foreign exchange reserves increased by USD 2.762 billion to USD 632.952 billion for the week ended February 18 on a healthy rise in the value of gold reserves and core currency assets, the RBI said on Friday.

    In the previous reporting week, the overall reserves had declined by USD 1.763 billion to USD 630.19 billion.

    During the reporting week, the rise in overall reserves was on account of an increase in the foreign currency assets (FCA), a major component of the overall reserves, the Reserve Bank of India’s (RBI) weekly data released on Friday showed.

    FCA increased by USD 1.496 billion to USD 567.06 billion in the week ended February 18, it said. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

    Gold reserves increased by USD 1.274 billion to USD 41.509 billion in the reporting week, the data showed.

    The special drawing rights (SDRs) with the International Monetary Fund (IMF) decreased by USD 11 million to USD 19.162 billion, RBI said.

    The country’s reserve position with the IMF increased by USD 4 million to USD 5.221 billion in the reporting week, the data showed.

  • RBI imposes monetary penalty of Rs 1 crore on State Bank of India

    The Reserve Bank of India (RBI) by an order dated November 16 has imposed a monetary penalty of Rs 1 crore on the State Bank of India for contravention of section 19 (2) of the Banking Regulation Act, 1949 (the Act), informed RBI.

    As per the press note, the irregularities were identified after a Statutory Inspections for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial positions as on March 31, 2018, and March 31, 2019, and the examination of the Risk Assessment Reports, Inspection Report and all related correspondence pertaining to the same, revealed, inter-alia, contravention of section 19 of the Act.

    Section 19 (2) of the Act says that “no banking company shall hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding thirty per cent of the paid-up share capital of that company or thirty per cent of its own paid-up share capital and reserves, whichever is less.

  • Rupee sinks to record low with stocks as Ukraine crisis boosts oil

    The Indian rupee tumbled to a record low along with stocks and bonds as a spike in oil prices spurred by the war in Ukraine threatened to inflate the nation’s oil-import bill and fan inflationary pressures.

    The rupee declined as much as 1% to 76.9625 per dollar, past its previous low of 76.9088. Benchmark government bond yields rose six basis poaints to 6.87%, while the S&P BSE SENSEX Index fell as much as 3.3% to 52,542.64, the lowest since July.

    Today’s move has turned the rupee into Asia’s worst performer this year as surging crude prices fueled worries about the country’s balance of payments. India imports nearly three-fourth of its oil, making it one of the most vulnerable in Asia to higher prices.

    India’s benchmark equity index dropped to its lowest level in more than seven months with most of the 30 stocks of the S&P BSE Sensex trading in the red.

    “Geopolitical risks will likely stay elevated, especially on the terms of trade shock and current-account deficit implications,” Barclays Plc. analysts including Ashish Agrawal wrote in a note. “The INR is more sensitive to supply side oil shocks,” he said, adding that the Reserve Bank of India “is likely to continue selling USD passively, but is unlikely to defend any particular level.”

    Foreign funds have taken out about $16 billion from India’s equity markets since September. The initial share sale of Life Insurance Corp., widely referred to as India’s Aramco moment, is also increasingly likely to be deferred given the volatile geopolitical conditions.

  • Sensex, Nifty surrender early gains as boiling oil plays spoilsport

    Equity indices relinquished early gains to close in the red for the second straight session on Thursday as surging oil prices amid the ongoing conflict between Russia and Ukraine sapped risk appetite.

    Crude oil prices ratcheted up towards the USD 120 per barrel mark on fears of supply disruptions as western nations tightened sanctions on Russia, which accounts for around 10 percent of global oil output.

    A weakening rupee and persistent foreign fund outflows also weighed on sentiment, traders said.

    The 30-share BSE Sensex started the trade on a firm footing and jumped 527.72 points in morning deals to a high of 55,996.62. However, during the afternoon session, it surrendered all its early gains and finished at 55,102.68, down 366.22 points or 0.66 percent.

    UltraTech Cement was the biggest drag among the Sensex components, tumbling 6.47 percent, followed by Asian Paints, Dr. Reddy’s Laboratories, Maruti Suzuki India, Hindustan Unilever Limited, and ICICI Bank. Similarly, the broader NSE Nifty declined 107.90 points or 0.65 percent to close at 16,498.05.

    In contrast, PowerGrid, Wipro, Tech Mahindra, HCL Tech, ITC, Tata Steel, and Infosys were among the prominent gainers, climbing as much as 3.34 percent.

    “Domestic equity markets closed lower as the geopolitical scenario continue to worsen due to the Russia-Ukraine crisis. Soaring crude prices due to supply disruptions from Russian sanctions have further escalated the situation,” according to Mitul Shah, Head Of Research at Reliance Securities.

    Vinod Nair, Head of Research at Geojit Financial Services, said the release of strategic reserves of oil in India and abroad along with increased output Afrom OPEC is expected to ease crude prices in the future.

    “Additionally, the Indian market will look at the state elections exit poll data while the global market will track war developments, BoE and Fed policy meeting status from next week,” he noted.

    Among sectors, BSE auto dropped the most at 2.24 percent, followed by consumer discretionary goods and services, bank and capital goods, while utilities, power, and oil and gas mustered gains.

    The BSE midcap and smallcap indices ended on a mixed note.

    International oil benchmark Brent crude surged 2.75 percent to USD 116.03 per barrel.

    Bourses in Hong Kong and Tokyo settled with gains, while Shanghai was marginally lower.

    Stock exchanges in the US closed in the positive territory in the overnight session. European markets were mostly lower in the afternoon session.

    The rupee declined by 16 paise to close at 75.96 against the US dollar on Thursday.

    Foreign institutional investors continued their selling spree in Indian markets as they offloaded shares worth Rs 4,338.94 crore on a net basis on Wednesday, as per exchange data.

  • Union Bank of India raises Rs 1,500 cr through Basel-III compliant bonds

    Union Bank has raised Rs 1,500 crore by issuing Basel III compliant bonds to investors.

    The bank has allotted unsecured, subordinated, non-convertible, taxable, perpetual, fully paid-up Basel III compliant additional tier-I bonds in the nature of debentures, aggregating to Rs 1,500 crore.

    The bonds are eligible for inclusion in the tier-I capital of the bank.

    To comply with Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.

    These norms are being implemented to mitigate concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

    Tier-I capital is the core capital of a bank’s reserves and it is primarily used to fund business activities. Banks are required to hold certain levels of tier 1 and tier 2 capital as reserves so that they can absorb large losses without threatening their stability.

    Shares of Union Bank of India closed at Rs 41 apiece on BSE, up 1.99 per cent from the previous close.

  • Indian investors can trade in select US stocks via NSE IFSC from March 3

    From March 3, investors in India will be able to trade in select US stocks through the NSE International Exchange (NSE IFSC), a wholly owned subsidiary of the National Stock Exchange (NSE). Investors can invest in NSE IFSC receipts on US stocks, which will be in the form of unsponsored depository receipts (DRs).

    For a start, this will include DRs of 50 US stocks such as Apple, Alphabet, Amazon, Tesla, Microsoft, Morgan Stanley, Nike, P&G, Coca-Cola, and Exxon Mobil.

    Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalised Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India (RBI), which currently stand at $250,000 per year.

    Resident investors will have to open a demat account at the IFSC and the stock receipts will be considered foreign assets for filing income tax returns. Short-term capital gains will be taxed at the slab rate while long-term capital gains will be at 20 per cent with indexation.

    “The business model offered by NSE IFSC will not only provide an additional investment opportunity to the Indian investors but also make the entire process of investment easy and at a low cost. Investors will be provided an option to trade in fractional quantity/value when compared to the underlying shares traded in US markets. The proposed framework will make US stocks affordable to Indian retail investors,” said a note put out by the NSE last year.

    Investing in global stocks has gained currency in the past two years in the backdrop of a decades-long bull run enjoyed by US equities and the need to avoid a single-country risk.

    Currently, Indian investors buy US stocks through designated online brokers who have permission from Indian and US regulators to offer such services.

  • Canara Bank hikes fixed deposit rates by up to 25 basis points

    State-owned Canara Bank on Tuesday raised interest rates on fixed deposits across various maturities by up to 25 basis points.

    The revised rates are effective from March 1, 2022, Canara Bank said in a statement.

    Interest rate on fixed deposits for tenure 1 year has been increased to 5.1 per cent while for one-two years it is raised to 5.15 per cent from 5 per cent, it said.

    Fixed deposit between 2-3 years would invite interest rate of 5.20 per cent and 3-5 years 5.45 per cent from 5.25 per cent earlier, it said.

    Maximum 25 basis point hike has been done for the 5-10 years fixed deposit slab to 5.5 per cent, it added.

    Senior citizens would earn 50 basis point more across all the brackets.

  • Rupee slumps 49 paise to 75.82 against US dollar in early trade

    The rupee declined 49 paise to 75.82 against the US dollar in opening trade on Wednesday amid a weak risk appetite as tensions escalated in Eastern Europe.

    Forex traders said sustained foreign fund outflows, a lackluster trend in domestic equities and elevated crude oil prices weighed on investor sentiment.

    At the interbank foreign exchange, the rupee opened at 75.78 against the US dollar, then slipped further to 75.82, registering a decline of 49 paise from the last close.

    On Monday, the rupee had settled at 75.33 against the US dollar.

    The forex market was closed on Tuesday on account of Mahashivratri.

    “The Rupee opened gap down against the US Dollar this Wednesday, tracking a rebound in the dollar index after ceasefire negotiations between Russian and Ukraine forces failed,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

    Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 percent to 97.41.

    Stronger crude oil prices and weaker Asian currencies against the US Dollar could weigh on sentiments, Iyer said.

    Meanwhile, global oil benchmark Brent crude futures jumped 5.15 percent to USD 110.38 per barrel.

    Markets will continue to remain volatile, and trade will continue surrounding headlines in Eastern Europe. The RBI could be present to curb excess volatility, Iyer added.

    On the domestic equity market front, the 30-share Sensex was trading 748.79 points or 1.33 percent lower at 55,498.49, while the broader NSE Nifty slipped 177.20 points, or 1.06 percent, to 16,616.70.

    Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 3,948.47 crore, as per stock exchange data.