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  • The Dollar Takes A Break As US Yields Drop Ahead Of CPI

    The Dollar Takes A Break As US Yields Drop Ahead Of CPI

    The US dollar’s rally came to a halt as the DXY index dropped to 103.5 before the release of April’s US Consumer Price Index (CPI) numbers, while Treasury yields fell as investors switched away from a turbulent stock market amid fears about global growth and a potential inflation peak The Japanese yen (JPY) and Swiss franc (CHF), the top laggards in the previous quarter, gained ground against the USD as the US 10-year yield fell below 3% in European morning trading.
    Investors want to know if the US has achieved its inflation high, which might trigger the dollar and other significant currencies to react aggressively. The US CPI is expected to drop to 8.1 percent in April from a 41-year high of 8.5 percent in March, marking the first drop in annual inflation in seven months.





    However, rising energy costs on the one hand, and pressure on services pricing as a result of a reasonably strong US employment market on the other, might potentially lead to positive April inflation surprises Meanwhile, risk appetite is increasing today, with the Australian currency (AUD) and the New Zealand dollar (NZD) among the best performers, after Shanghai reported a 51% drop in new daily Covid-19 infections, while Beijing reported fewer instances as well After the head of the Bundesbank suggested that a rate hike could come in July and that waiting to change monetary policy is a risky strategy, the euro
    The Norwegian krone (NOK) increased by over 1% on the day, while the Canadian dollar (CAD) increased by 0.4 percentThe high-beta Swedish krona (SEK) was also one of the best performers today, rising roughly 1% against the dollar.

  • India’s Foreign Exchange Reserves Have Plummeted By $1.7 Billion, Reaching A one-Year Low

    India’s Foreign Exchange Reserves Have Plummeted By $1.7 Billion, Reaching A one-Year Low

    According to Reserve Bank of India (RBI) data released on Friday, India’s forex reserves fell by USD 1.774 billion to USD 595.954 billion for the week ended May 6 due to a drop in core currency assets Overall reserves fell by USD 2.695 billion to USD 597.728 billion in the preceding reporting week, dropping below the USD 600 billion level RBI is apparently intervening across all markets to defend the rupee, which is under pressure due to large outflows by foreign investors. In the six months leading up to March 2022, foreign exchange reserves fell by USD 28.05 billion.




    According to RBI’s weekly data, the loss in reserves was due to a drop in Foreign Currency Assets (FCA), a major component of overall reserves, and gold reserves during the reporting week.

    In the week ending May 6, FCA fell by USD 1.968 billion to USD 530.855 billion The effect of appreciation or depreciation of non-US units held in foreign exchange reserves, such as the euro, pound, and yen, is included in the foreign currency assets when expressed in dollar terms The data showed that gold reserves climbed by USD 135 million to USD 41.739 billion in the reporting week. The International Monetary Fund’s (IMF) Special Drawing Rights (SDRs) increased by USD 70 million to USD 18.370 billion According to the data, the country’s reserve position with the IMF fell by USD 11 million to USD 4.99 billion in the reporting week.

  • Gokaldas Exports rises 9% to an all-time high, indicating a positive business outlook

    Gokaldas Exports rises 9% to an all-time high, indicating a positive business outlook

    On the back of a positive business outlook, Gokdaldas Exports’ stock hit an all-time high of Rs 505.65 on the BSE in intra-day trade on Wednesday The company’s stock, which is in the textiles and apparel business, has surpassed its previous high of Rs 488, which it reached on May 5, 2022. It has outpaced the market by 30 percent in the last month, compared to a 4 percent fall in the Gokaldas Exports achieved the greatest quarterly performance for the January-March quarter (Q4FY22), thanks to a growing order book and the ability to weather supply chain hiccups.




    In Q4FY22, the company’s consolidated profit after tax (PAT) more than doubled to Rs 61 crore, up from Rs 16 crore the previous quarter.

    Due to strong operating leverage, its consolidated earnings before interest, taxes, depreciation, and amortization (Ebitda) margin increased 170 basis points quarter over quarter and 365 basis points year over year to Revenue increased by 58% year on year (YoY) to Rs 588 crore, the largest quarterly revenue ever, compared to Rs 373 crore in Q4FY21. Export revenue grew by 58.3 percent year over year. According to the corporation, robust revenue growth was supported by deep interaction with key customers and capacity expansion Strong capacity expansion and a speedy ramp-up of production were the key drivers of growth. A higher operating profit was driven by increased volume, a better product mix, and enhanced operational efficiency. The company’s capacity to withstand production and supply chain disruptions is reflected in the year’s results, according to the company.





    For the entire fiscal year 2021-22 (FY22), consolidated profit after tax (PAT) increased by 342% year on year to Rs 117 crore, while operating revenue increased by 47.9% to Rs 1,790 crore. Ebitda’s margin increased 270 basis points to 12.0% from On the forecast, management stated that the order book for FY23 remains hopeful. Despite the predicted uncertainties from a combination of headwinds and tailwinds, the company sees growth potential in Continued global sourcing shift away from China, supplier consolidation towards efficient and well-capitalized players, supply-side instabilities in countries such as China, Vietnam, and Sri Lanka, strengthening Dollar, the announcement of Production Linked Incentive (PLI), and signing of free trade agreements (FTAs) with key markets are some of the opportunities.

  • Metal Stocks Rise On Renewed Demand Expectations; Hindalco And Vedanta Both Gain 7%

    Metal Stocks Rise On Renewed Demand Expectations; Hindalco And Vedanta Both Gain 7%

    Individual stocks like as Vedanta and Hindalco Industries both rose 7% to Rs 307.70 and Rs 419.70, respectively. Apart from that, Hindustan Copper, National Aluminium Company, JSW Steel, and Tata Steel also had gains of The Nifty Metal index was the highest gainer among sectoral indexes at 10:36 a.m., gaining 4.4 percent versus 1.3 percent for the Nifty50 index Despite today’s rally, most metal equities have had a 30% correction in the last month. Vedanta, Steel Authority of India (SAIL), Hindalco, JSW Steel, Hindustan Zinc, NMDC, Tata Steel, and Jindal Steel, on the other hand, were down between 13% and 30%. Meanwhile, the Nifty Metal index has dropped 15% in the last month, compared to an 8% drop in the Nifty50 index.





    Shanghai laid out plans on Monday for the return to normalcy on June 1 and declared the six-week-long COVID lockdown complete In April, China’s economic activity slowed drastically as lockdowns wreaked havoc on industrial production and employment, fueling predictions that the economy could contract in the second quarter Industrial metals prices surged on Monday as a result of China’s announcement that COVID restrictions would be eased.

  • As investors seek safe haven assets, the rupee hits a new all-time low

    As investors seek safe haven assets, the rupee hits a new all-time low

    The rupee struck a new all-time low versus the dollar in early trade on Tuesday, trading at 77.78/$, as the dollar strengthened against other foreign currencies, prompting investors to seek safe haven assets This is the second trading session in a row that the Indian currency has dropped to new lows. The rupee.





    touched an intraday low of 77.63/$ on Friday, the preceding trading day The Reserve Bank of India increased its currency market intervention, slowing the rate of decline. Following Russia’s invasion of Ukraine, the Indian currency, which has devalued by roughly 4% in 2022, came under pressure. Since the battle began in late February of this year, the foreign reserves have dropped by roughly $35 billion.

  • Sensex Stops 6-Day Losing Streak With A 180-Point Gain; DMart Rallies 10%, ACC 4%

    Sensex Stops 6-Day Losing Streak With A 180-Point Gain; DMart Rallies 10%, ACC 4%

    On Monday, equity markets closed a bumpy day in the green, increasing for the first time in seven days, as global markets backed up the trade sentiment. The benchmark S&P BSE Sensex fluctuated between 796 points and 52,974 points, or 0.34 percent higher. On the other side, the NSE Nifty closed at 15,842, up 60 points or 0.38 percent The biggest gainers on the Sensex index today were NTPC, Bajaj Finance, Maruti Suzuki, SBI, HDFC, Kotak Bank, M&M, and IndusInd Bank, which rose between 1.6 and 2.9 percent.





    Ultratech Cement, Asian Paints, ITC, TCS, HCL Tech, Nestle, and Dr Reddy’s Labs were the worst performers, with losses ranging from The BSE MidCap and SmallCap indexes outpaced the benchmarks by 1.5 percent and 1.15 percent, respectively, in the wider market. The Nifty PSU Bank index was the best performer, up 3%, while the Nifty IT index was the poorest performer, down 0.75 percent.

  • Today’s gold price is Rs 51,490 per 10 gramme, with silver at Rs 60,800 per kilogramme

    International gold prices

    On Friday, the price of 10 grammes of 24 carat gold increased by Rs 490 to Rs 51,490, while the price of 1 kilogramme of silver increased by Rs 400 to Rs 60,800.

    On Friday, the price of 10 grammes of 22 carat gold increased by Rs 450, bringing the price to Rs 47,200. The price of 10 grammes of 24 carat gold in Delhi and Mumbai is Rs 51,490, which is the same as the price of 10 grammes of 24 carat gold in Bangalore, Kolkata, and Hyderabad.

    In Chennai, however, 10 grammes of 24 carat gold costs Rs 52,750.
    The price of 10 grammes of 22 carat gold in Delhi and Mumbai is Rs 47,200, which is the same as the price of 10 grammes of 22 carat gold in Bangalore, Kolkata, and Hyderabad.

    In Chennai, however, 10 grammes of 22 carat gold costs Rs 48,350. In Delhi, Mumbai, and Kolkata, a kilogramme of silver costs Rs 60,800, while the precious metal costs Rs 65,000 in Bangalore, Hyderabad, Chennai, and Kerala. The price of gold varies by region due to numerous factors such as making costs, excise duty, state taxes, and so on. The gold rates in India are influenced by a variety of factors, including international gold prices, local levies, and currency fluctuations.

  • Rupee falls to a new low of 77.58 against the US dollar

    Indian rupee

    The Indian rupee fell to a new record low against the US dollar on Thursday, echoing losses across Asian rivals. The drop in global and local shares following the US inflation report pointed to more aggressive Fed tightening amid deteriorating investor confidence hit down by the global economic slowdown.

    The currency began trading at 77.56 per dollar and fell to a new low of 77.58 per dollar. The local currency was trading at 77.57 per dollar at 9.30 a.m., down 0.4 percent from its previous close.

    The South Korean won dropped 1.05 percent, the Taiwan dollar 0.5 percent, the Chinese Renminbi 0.41 percent, the Philippine Peso 0.25 percent, and the Malaysian ringgit and Thai Baht each declined 0.2 percent.

    Last month, the US consumer price index increased by 8.3% over the previous month. This was lower than the 8.5 percent increase in March, which was the largest since 1981. Following similar hikes in June and July, analysts now expect the Federal Reserve to raise rates by half a point in September.

    Investors were particularly concerned about the Russia-Ukraine conflict and China’s COVID restrictions.

    Traders are now waiting for India’s consumer price inflation and industrial production index data, which will be released after 5.30 p.m. today. According to Bloomberg, the CPI will be 7.42 percent in April, up from 6.95 percent the previous month. IIP will be 1.3 percent in March, down from 1.7 percent the previous month.

    In response to increased oil costs and slower global growth, Morgan Stanley has lowered India’s GDP growth predictions to 7.6% for FY2023 and 6.7 percent for FY2024.

    The dollar index, which gauges the strength of the US currency versus other major currencies, was at 104, up 0.1 percent from its previous closing of 103.85.

  • To protect the rupee, the RBI may be cautious about spending FX reserves

    Reserve Bank of India

    When the Federal Reserve tightens, the Reserve Bank of India tries to defend its currency once more.

    Analysts expect it to launch a more limited defense this time, geared at fighting off the worst of speculative attacks rather than drawing a line in the sand when global capital flows are shifting and the Fed is expected to increase throughout the year.

    To save ammunition amid a broad dollar surge spurred by expectations of aggressive monetary tightening by the Federal Reserve, the RBI may choose a limited intervention policy. According to analysts, the RBI’s stated goal is to reduce excessive currency volatility, and reserves have declined in recent weeks, indicating market involvement.

    On Monday, the rupee fell to a new low of 77.53 per dollar as the dollar rose further and amid rising petroleum prices, threatening to extend the trade gap to uncharted heights. Foreign funds have been fleeing the country’s equities at an unprecedented rate, and a central bank that delayed tightening policy until last week hasn’t helped matters.

    When compared to its emerging Asian peers, the rupee’s movements have been orderly during the last month. This year, the currency has lost about 4% of its value and sits in the middle of the Asian pack.

    India’s central bank is intervening in all foreign exchange markets, including offshore markets, and will continue to do so to defend the rupee, which fell to a record low on Monday. A spokeswoman for the central bank was not immediately available for comment.

    According to the most recent data, the country’s foreign reserves were $598 billion. Although this is down 7% from a record high of over $640 billion in September due to a combination of intervention and valuation revisions, it still performs well on key metrics such as import coverage and short-term debt obligations, according to Radhika Rao, the senior economist at DBS Bank Ltd.

  • In early trade, the rupee rose 17 paise to 77.17 against the US dollar

    interbank foreign exchange

    In early trade on Wednesday, the rupee rose 17 paise to 77.17 against the US dollar, as the American currency fell from its recent highs.

    The rupee began at 77.24 versus the dollar on the interbank foreign exchange, then gained further ground to quote at 77.17, up 17 paise from the previous close. The rupee also hit a low of 77.31 against the dollar in early trade.

    The rupee was trading at 77.34 against the US dollar on Tuesday.

    The dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.06 percent at 103.85.

    Domestic equities, firm crude oil prices, and ongoing foreign fund outflows, according to forex traders, could weigh on the currency and limit its gains.

    The 30-share Sensex was up 27.61 points, or 0.05 percent, at 54,392.46, while the wider NSE Nifty was up 8.30 points, or 0.05 percent, at 16,248.35 on the domestic equity market.

    Brent crude futures increased 1.83 percent to USD 104.34 per barrel, the global benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Tuesday, offloading shares worth Rs 3,960.59 crore.