Vishnu Chemicals Joint MD Siddartha CH on Wednesday said rupee depreciation will improve the margin in coming quarters. He was talking to CNBC-TV18 about the company’s business outlook, the impact of the Europe energy crisis and the falling rupee.
“The current rupee depreciation is also going to improve our margins in the coming quarters and easing of supply chain is also going to benefit in terms of deliveries from our side,” he said.
On capacity, he said that the company has an additional 12 percent capacity which can cater to extra demand.
While on business, the company expects volume growth this fiscal to be 12 percent higher versus earlier expectations. Also, lower logistics costs will aid in higher margins, he said.
Indian bond yields off session highs on short-covering amid soaring oil prices and losses in the stock market, rupee near one month low
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Rupee dropped to its lowest in nearly a month against the dollar weighed by sharp gains in global crude oil prices, while bond yields pulled back from session highs on short-covering. IT companies also bear the brunt of the global instability coupled with other reasons with IT major Infosys stocks witnessing a sharp 9% decline on missing quarterly profit estimates.
The Indian rupee dropped on Monday to its lowest in nearly a month against the dollar, tracking losses in the stock market and weighed by sharp gains in global crude oil prices, while bond yields pulled back from session highs on short-covering.
Oil prices climbed to their highest in nearly three weeks as fears over tight global supply grew, with the deepening crisis in Ukraine raising the prospect of heavier sanctions by the West on top exporter Russia.
India imports more than two-thirds of its oil requirements and rising prices tend to push up imported inflation and widen the country’s trade and current account deficits.
The partially convertible rupee was trading at 76.28 per dollar versus its close of 76.17 on Wednesday. Earlier in the session, it touched a low of 76.43, its weakest since March 22. The Financial markets were closed on Thursday and Friday for holidays.
The benchmark 10-year bond yield was trading down 3 basis points at 7.18% by 08:28 GMT, after earlier rising to a high of 7.26%.
“Stocks are also down quite a bit, so we saw some consolidation in bonds after the weak open. But with weekly supply, yields don’t have many downsides from here unless the RBI does something,” said a senior trader with a foreign bank.
Indian shares touched three-week lows, hit by losses in IT stocks after one of the top IT companies- Infosys crashed 9% on missing quarterly profit estimates, while inflation concerns also weighed on sentiment.
Data showed that country’s annual wholesale inflation rate accelerated to 14.55% in March completing a year in the double-digit territory as firms grapple with rising input costs and pass on higher prices to consumers.
“Supply shortages and price increases in a number of input goods due to the Russia-Ukraine conflict will keep domestic inflation high in the coming months, setting the stage for front-loaded monetary policy tightening by the central bank,” said Rahul Bajoria, chief economist at Barclays.
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Rupee strength continues, ECB chief Draghi’s last monetary policy due today while Brexit developments and concerns dominate
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The rupee is expected to broadly trade in the range of 70.55 to 71.05, followed by 70.35 which remains an important support while 71.30 remains an important resistance.
Considering mixed global cues and anticipations, market participants seem to be sidelined which is also a reflection seen in volumes which have gone lower. The rupee closed at 70.91 yesterday, trading in a very thin range for the day.
A partial trade deal between the US and China and easing crude prices have lifted the market sentiment. But trade war still continues to be a hanging sword for the markets until a final verdict comes out.
President Donald Trump said he is lifting the sanctions imposed on Turkey over its offensive against Kurdish fighters in Northern Syria. Turkish Lira surged to 5.73 levels. His decision came after Russia agreed with Turkey to deploy troops to extend ceasefire along the Syrian border.
Investors’ attention has also shifted to the increasing likelihood of US Fed rate cut in the October 29-30 policy due to slowdown in the manufacturing sector, consumer sentiment and mixed inflation results. Traders see 91 percent chance for 25-basis points rate cut by the Fed. The rupee is expected to broadly trade in the range of 70.55 to 71.05, followed by 70.35 which remains an important support while 71.30 remains an important resistance.
European Central Bank monetary policy (ECB) is due today which is expected to be a non-event but the focus remains on the Manufacturing and Services PMI data of German, French and Eurozone which are also due today.
ECB chief Mario Draghi is ending his eight-year term at the ECB at the end of the month. The ECB will start buying €20 bln of bonds a month starting from the start of November. At the ECB’s September meeting, they had announced the restart of asset purchases, cut its deposit rate to minus 0.5 percent and eased the terms of its program of long-term bank loans.
But the decision also sparked a revolt on the governing council, with some policymakers seeing the resumption of bond purchases as excessive. Given this stance, no change is expected in this policy.
Major resistance for EURUSD comes at 1.1186 levels which is 61.8 percent Fibonacci level of 2017-2018 rally followed by 1.1205 (200DMA) while major support comes at 1.1070 levels. British lawmakers gave a green signal for the Brexit deal which PM Boris Johnson had agreed with the EU last week.
But that was offset later when Parliament rejected his three-day timetable to rush legislation through the House of Commons, making chances for ratification of his deal by October 31 almost zero.
EU leaders considered whether to give Britain a three-month extension while PM Johnson said that if they do so he would call for an election by Christmas. European Council President Donald Tusk said on Twitter he had recommended that EU leaders back a delay. Two scenarios need to be considered:
A. Lengthy Delay: In this case, the chances of a general election go high, which would further add to the uncertainty, affect economic growth and put pressure on Sterling.
B. Short Delay: The chances of closing the deal smoothly remain higher, and Sterling could rally in a knee jerk reaction. But all said and done, even after the deal getting struck and UK moving out of EU, the tough journey for the independent UK would begin from there on. Immediate resistance comes at 1.2990 levels followed by 1.3073 levels (May 08 high) while important support comes at 1.2760 levels.
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Rupee opens tad lower at 69.76 a dollar, bond yields rise
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The rupee opened marginally lower against the dollar on Tuesday, a day after the domestic currency recorded its biggest single-day gain in two months after exit polls suggested another term for the ruling NDA government.
The rupee opened marginally lower against the dollar on Tuesday, a day after the domestic currency recorded its biggest single-day gain in two months after exit polls suggested another term for the ruling NDA government.
The News18-Ipsos exit poll showed NDA securing 336 seats beating the 82 seats by the Congress-led United Progressive Alliance, a coalition of opposition parties. The tally of the Congress, which won 44 seats in 2014 — its worst-ever electoral performance — is projected to reach 46 seats. The BJP, on the other hand, will score 276.
At 09:10 AM, the rupee was trading at 69.72 a dollar, up 2 paise from its Monday’s close of 69.74. The home currency opened at 69.76 and touched a high and a low of 69.71 and 69.76 a dollar, respectively.
The rupee, Asia’s top performer in March, has slid 1.6 percent this quarter as escalating trade tensions roiled global markets. Sentiment has been fragile as overseas investors have pulled more than $650 million combined from local shares and bonds this month.
In the currency market, the dollar held near a 2-1/2-week high on Tuesday, as growing tensions between the United States and China boosted investors’ appetite for the safe-haven greenback.
The dollar index against a basket of six major currencies stood at 97.947 after brushing 98.036 overnight, its highest since May 3.
In commodity markets, oil prices edged higher on the back of escalating tensions between the United States and Iran.
Brent crude futures, the international benchmark for oil prices, were at $72.03 per barrel at 0118 GMT, up 6 cents, or 0.1 percent, from their last close.
Meanwhile, foreign investors put in Rs 1,734.45 crore on a net basis in equity markets Monday, provisional exchange data showed.
In debt markets, the yields on the 10-year government bonds were up 0.07 percent to 7.29 percent from its previous close of 7.29 percent. Bond yields and prices move in opposite directions.
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Rupee falls 14 paise to 69.02 a dollar in opening trade
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The rupee opened lower against the greenback on Thursday, as a stronger US dollar weighed on the domestic unit.
The rupee opened lower against the greenback on Thursday, as a stronger US dollar weighed on the domestic unit.
At 09:10 AM, the rupee was trading at 69.02 a dollar, down 14 paise from its Wednesday’s close of 68.88. The home currency opened at 69.10 and touched a high and a low of 69.01 and 69.11 a dollar, respectively.
The Indian currency has been riding high on massive liquidity push in the form of strong foreign fund inflows in March. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,481.11 crore Wednesday, as per provisional data.
Globally, the dollar, perceived as a safe-haven asset during the crisis, edged higher. The US dollar firmed against a basket of its competitors at 96.909.
In commodity markets, oil prices edged lower after an industry report showed an unexpected rise in US crude inventories.
International Brent crude oil futures were at $67.63 a barrel at 0045 GMT, down 20 cents, or 0.3 percent, from their last close. Brent closed down 0.2 percent on Wednesday.
In debt markets, the yields on the 10-year government bonds were down 0.12 percent to 7.32 percent from its previous close of 7.33 percent. Bond yields and prices move in opposite directions.
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Rupee opens lower at 69 a dollar, bond yields rise
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The rupee opened lower against the greenback on Wednesday, as a stronger US dollar weighed on the domestic unit. At 09:10 AM, the rupee was trading at 68.92 a dollar, down 6 paise from its Tuesday’s close of 68.86. The home currency opened at 69.00 and touched a high and a low of 68.92 and …
The rupee opened lower against the greenback on Wednesday, as a stronger US dollar weighed on the domestic unit.
At 09:10 AM, the rupee was trading at 68.92 a dollar, down 6 paise from its Tuesday’s close of 68.86. The home currency opened at 69.00 and touched a high and a low of 68.92 and 69.01 a dollar, respectively.
The Indian currency has been riding high on massive liquidity push in form of strong foreign fund inflows in March. Foreign institutional investors (FIIs) pumped in Rs 150.40 crore on a net basis Monday, provisional data showed.
Globally, the dollar held gains as a recovery in investor risk appetite curbed further jfall in US bond yields.
The dollar index versus a basket of six major currencies was steady at 96.765 after edging up nearly 0.2 percent overnight.
In commodity markets, oil prices edged lower after an industry report showed an unexpected rise in U.S. crude inventories.
International Brent was down by 12 cents, or 0.2 percent, at $67.85 by 0010 GMT. On Tuesday, the global benchmark rose 76 cents to $67.97 a barrel, not far below its year-to-date high of $68.69, reached on March 21.
In debt markets, the yields on the 10-year government bonds were up 0.22 percent to 7.34 percent from its previous close of 7.32 percent. Bond yields and prices move in opposite directions.
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Rupee gains 10 paise to 68.86 a dollar in opening trade
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The rupee opened higher against the greenback on Tuesday, as sustained overseas fund inflows in the debt and equity markets helped support the domestic currency.
The rupee opened higher against the greenback on Tuesday, as sustained overseas fund inflows in the debt and equity markets helped support the domestic currency.
At 09:10 AM, the rupee was trading at 68.86 a dollar, up 10 paise from its Monday’s close of 68.96. The home currency opened at 68.90 and touched a high and a low of 68.85 and 68.91 a dollar, respectively.
The Indian currency has been riding high on massive liquidity push in the form of strong foreign fund inflows in March. On a net basis, foreign portfolio investors (FPIs) bought equities worth a net Rs 150.40 crore Monday, provisional data showed.
Globally, the dollar edged higher after hitting a six-week low of 109.70 the previous day, when fears of a global economic slowdown depressed US yields and boosted investor demand for the yen.
The greenback edged up 0.15 percent to 110.13 yen on Tuesday.
In commodity markets, oil prices firmed, pushed up by ongoing supply cuts led by producer club OPEC and by US sanctions on Iran and Venezuela
International Brent crude oil futures were at $67.46 per barrel at 0110 GMT, up 25 cents, or 0.4 percent, from their last close.
In debt markets, the yields on the 10-year government bonds were up 0.05 percent to 7.33 percent from its previous close of 7.32 percent. Bond yields and prices move in opposite directions.
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Rupee sheds 16 paise against US dollar in early trade
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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At the Interbank Foreign Exchange (forex) market, the domestic unit opened lower at 69.07 and slipped further to 69.14 but recovered partially to quote 16 paise down at 69.11 against the dollar.
The rupee depreciated 16 paise to 69.11 against the US dollar in opening trade Monday on month-end demand for the American currency from importers amid a weak opening in domestic equity market.
Besides, the US dollar edged back from a six-week low against the yen and this factor also weighed on the Indian rupee, dealers said.
At the Interbank Foreign Exchange (forex) market, the domestic unit opened lower at 69.07 and slipped further to 69.14 but recovered partially to quote 16 paise down at 69.11 against the dollar.
On Friday, the rupee had ended lower by 12 paise at 68.95 against the American currency on rise in demand for the greenback from importers and sell-off in domestic equities.
Forex dealers said the local unit was weighed down by strong dollar demand from importers to make month-end payments. However, sustained foreign fund inflows and easing crude prices restricted the fall.
Brent crude futures, the global oil benchmark, slipped 0.82 percent to $66.48 per barrel.
Meanwhile, the benchmark BSE Sensex fell by 306.53 points, or 0.80 percent, at 37,858.08 in early deals.
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Rupee jumps 21 paise to 68.62 a dollar in opening trade
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The rupee opened higher against the greenback on Friday, as sustained overseas fund inflows in the debt and equity markets helped support the domestic unit.
The rupee opened higher against the greenback on Friday, as sustained overseas fund inflows in the debt and equity markets helped support the domestic unit.
At 09:10 AM, the rupee was trading at 68.62 a dollar, up 21 paise from its Wednesday’s close of 68.83. The home currency opened at 68.69 and touched a high and a low of 68.57 and 68.70 a dollar, respectively.
Indian financial and money markets were shut on Thursday for a public holiday.
The Indian currency has been riding high on massive liquidity push in the form of strong foreign fund inflows in March. On a net basis, Foreign Institutional Investors (FIIs) bought shares worth a net of Rs 1,771.61 crore on Wednesday, while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 1,323.17 crore, provisional data available with BSE showed.
Globally, the dollar largely held onto the previous session’s gains in early Asian trade on Friday.
Against a basket of key rival currencies, the dollar was about 0.1 percent lower at 96.394.
In commodity markets, oil prices hovered close to 2019 peaks reached the previous day, propped up by supply cuts led by producer club OPEC.
International Brent crude oil futures were at $67.82 per barrel at 0122 GMT, down 4 cents from their last close but within a dollar of the $68.69 per barrel 2019-high marked the day before.
In debt markets, the yields on the 10-year government bonds were down 0.52 percent to 7.32 percent from its previous close of 7.36 percent. Bond yields and prices move in opposite directions.
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Rupee opens lower at 69.04 a dollar, FOMC in focus
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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The rupee opened slightly lower against the greenback on Wednesday, as investors braced for caution ahead of the outcome of the Federal Open Market Committee meeting later in the day.
The rupee opened slightly lower against the greenback on Wednesday, as investors braced for caution ahead of the outcome of the Federal Open Market Committee meeting later in the day.
At 09:10 AM, the rupee was trading at 69.08 a dollar, down 12 paise from its Tuesday’s close of 68.96. The home currency opened at 69.04 and touched a high and a low of 69.04 and 69.14 a dollar, respectively.
The Indian currency has been riding high on massive liquidity push in form of strong foreign fund inflows in March. Foreign institutional investors (FIIs) put in Rs 2,132.36 crore on a net basis on Tuesday, provisional data showed.
Globally, the dollar was range bound, as investors awaited the outcome of the Federal Reserve’s March policy meeting later in the day.
Many investors expect the Fed, which has raised rates four times last year, to keep its benchmark overnight interest rate unchanged and stick to its pledge of a “patient” approach to monetary policy, reported Reuters.
Against a basket of key rival currencies, the dollar was broadly steady at 96.388 after hitting its lowest level since March 1 at 96.291 in overnight trading.
In commodity markets, oil prices retreated from a four-month high, on concerns over global economic growth.
International Brent crude oil futures were at $67.50 a barrel at 0222 GMT, down 11 cents, or 0.2 percent, from their last close. Brent touched $68.20 a barrel on Tuesday, its highest since Nov. 16.
In debt markets, the yields on the 10-year government bonds were down 0.12 percent to 7.37 percent from its previous close of 7.38 percent. Bond yields and prices move in opposite directions.
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