Latest news with #NSDL
Yahoo
17 hours ago
- Business
- Yahoo
Rupee caught between US dollar weakness, lack of directional bias
By Nimesh Vora MUMBAI (Reuters) -The Indian rupee is likely to open slightly weaker on Tuesday and is expected to hold a narrow range through the day amid a struggling U.S. dollar and the lack of momentum on either side. The 1-month non-deliverable forward indicated an open in the 85.40-85.44 range, versus the close of 85.3825 in the previous session. Non-deliverable forwards suggest the rupee is unlikely to benefit from the up-move in regional peers. The offshore Chinese yuan (CNH=) inched higher past the 7.20 level against the dollar, while the Korean won, Malaysian ringgit, and Indonesian rupiah each rose about 0.3%. "Yesterday, the situation was reverse — the rupee outperformed most Asian peers," said a currency trader at a Mumbai-based bank, adding that overall, the rupee was "simply lacking direction". "We're in a phase where speculative interest has diminished, leading to largely range-bound sessions. Any meaningful move is likely to come only post the two key events on Friday.' On Friday, the Reserve Bank of India is expected to deliver its third successive interest rate cut - a 25-basis-point cut - on the back of benign inflation data. Later in the day, the release of the U.S. non-farm payrolls report for May will offer fresh insight into the health of the U.S. labour market amid ongoing tariff-related uncertainty. Softer non-farm payrolls data could reinforce expectations of a potential Federal Reserve rate cut, keeping the dollar index under mild downward pressure, HDFC Bank said in a note. The U.S. dollar has been under pressure for much of the year, weighed down by policy uncertainty and, more recently, concerns over the fiscal deficit. The dollar index (=USD) is currently trading just 1% above its year-to-date low. Concerns about tariff-related turbulence has resurfaced, adding to the dollar's headwinds. U.S. President Donald Trump signalled plans to double tariffs on steel and aluminium, while U.S.-China trade relations remain uncertain. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.54; onshore one-month forward premium at 14.25 paisa ** Brent crude futures up 0.5% at $65 per barrel ** Ten-year U.S. note yield at 4.45% ** As per NSDL data, foreign investors sold a net $585.4 million worth of Indian shares on May 30 ** NSDL data shows foreign investors sold a net $712.3 million worth of Indian bonds on May 30
Business Standard
2 days ago
- Business
- Business Standard
Stocks set to open lower amid tepid Asian cues
GIFT Nifty: GIFT Nifty June 2025 futures were trading 64 points lower in early trade, suggesting a negative opening for the Nifty 50. Economy: India's GDP growth touched a four-quarter high of 7.4% in Q4 FY25, with full-year growth ending at 6.5%, according to data released by the government post market hours Friday. The GDP growth, higher than the previous quarter of 6.4%, was lower than the 8.4% growth logged in Q4 FY24. Meanwhile, Indias fiscal deficit for FY25 stood at 4.8% of GDP, meeting the revised estimate, according to data released by the Comptroller General of Accounts on Friday. The central governments fiscal deficit stood at Rs 15.77 lakh crore, or 100.5% of the revised annual target, compared with 95.4% a year before. Institutional Flows: Foreign portfolio investors (FPIs) sold shares worth 6,449.74 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 9,095.91 crore in the Indian equity market on 30 May 2025, provisional data showed. According to NSDL data, FPIs have bought shares worth Rs 18082.82 crore in the secondary market during May 2025. This follows their purchase of shares worth Rs 3243.03 crore in April 2024. Global Markets: US Dow Jones futures were down 124 points, signaling a weak start for Wall Street. Asian shares were trading lower Monday after U.S. President Donald Trump announced a fresh tariff hike on steel imports, sending jitters across global markets. Speaking to U.S. steelworkers late Friday, Trump said he would double tariffs on steel from 25% to 50%, effective Wednesday, June 4. Markets in China, Malaysia, and New Zealand were closed for holidays, muting some of the early regional reactions. Trump also took to Truth Social to confirm the June 4 rollout, claiming the hike was in response to Chinas alleged breach of a recent trade agreement. He didnt elaborate on how the deal was violated but added that he plans to speak with Chinese President Xi Jinping soon. Wall Street ended last week on a mixed note. The S&P 500 was nearly flat, inching down 0.01% to close a strong month. The Nasdaq Composite slipped 0.32%, while the Dow Jones eked out a 0.13% gain. Commerce Secretary Howard Lutnick backed the tariff decision over the weekend, saying the measures were not going anywhere, even as they face stiff legal resistance. A federal trade court had recently blocked much of Trumps tariff plans, but an appeals court swiftly reinstated them. The case now looks poised to head to the Supreme Court. Trump, undeterred, hinted hed use alternative mechanisms to enforce the tariffs if necessary. This legal showdown is unfolding just weeks ahead of a key July deadline to ink new trade deals. If those talks fall through, Trump has threatened sweeping new tariffs on several major economies. Domestic Market: Domestic equity benchmarks closed with modest losses Friday as investors adopted a cautious stance ahead of India's GDP data release. Sentiment was also weighed down by global trade uncertainties after a U.S. federal appeals court upheld tariff measures introduced during President Trumps tenure. The S&P BSE Sensex declined 182.01 points or 0.22% to 81,451.01. The Nifty 50 index shed 82.90 points or 0.33% to 24,750.70.
Mint
2 days ago
- Business
- Mint
Rupee supported at open by dollar dip on US tariffs, fiscal concerns
MUMBAI, June 2 (Reuters) - The Indian rupee is expected to be supported at the open on Monday following a decline in the U.S. dollar due to tariff-related developments and fiscal concerns. The 1-month non-deliverable forward indicated an open in the 85.52-85.54 range, versus 85.5775 in the previous session. The dollar index slipped 0.2% while Asian currencies were mixed on the day. "Not much on the Asian front to guide the rupee today, with two-way flows likely to dominate in the 85.50–85.70 band," a currency trader at a Mumbai-based bank said. According to the trader, interbank players are looking to sell dollar/rupee on up ticks, with stops placed around the 86 mark. In recent sessions, the rupee has found support in the 85.60–85.70 zone, with bankers noting broad-based interest in selling dollars at those levels. The dollar kicked off the week on the defensive against its major peers, weighed down by ongoing uncertainty over U.S. tariffs. President Donald Trump announced late Friday his intention to double duties on imported steel and aluminium to 50%, effective Wednesday. This follows a U.S. trade court that initially blocked much of Trump's tariff plan, ruling that he had overstepped his authority. However, an appeals court later reinstated the bulk of those duties, reigniting market caution. The dollar has further been weighed down by fiscal worries in recent weeks. The U.S. Senate will consider Trump's sweeping tax cut and spending bill, which will add an estimated $3.8 trillion to the $36.2 trillion in debt over the next decade. "US growth and interest rates should continue to converge lower than in many other major economies", which should keep the dollar under pressure, ING Bank said. "And there's still a sizeable risk that fiscal credibility issues take their toll on US assets this summer." ** One-month non-deliverable rupee forward at 85.64; onshore one-month forward premium at 13.25 paisa ** Dollar index down at 99.2 ** Brent crude futures up 2.7% at $64.5 per barrel ** Ten-year U.S. note yield at 4.41% ** As per NSDL data, foreign investors sold a net $205.6mln worth of Indian shares on May 29 ** NSDL data shows foreign investors bought a net $3,412.8mln worth of Indian bonds on May 29 (Reporting by Nimesh Vora; Editing by Eileen Soreng)
Indian Express
2 days ago
- Business
- Indian Express
Foreign inflows into equity, debt markets rise to Rs 30,950 crore in May
After heavy outflows in the last eight months, inflows by FPIs into equity markets in May have hit the highest levels since September last year on the back of de-escalation in Indo-Pak tensions, possibility of a trade deal with the US, a weakening US dollar and better than expected corporate earnings quarter for most companies. In May, FPIs bought equity for Rs 19,860 crore through the exchanges, according to NSDL data. The change in FPI strategy in India which began in April continued in May, leading to a marginal 12 bps rise in their ownership in listed companies to 17.5 per cent on a sequential basis. FPIs remained sellers in India in the first three months of 2025. The big selling in stocks began in January (Rs 78,027 crore) when the dollar index peaked at 111 in mid-January. The intensity of selling declined and FPIs turned buyers in April with a buy figure of Rs 4,223 crore. Foreign players pulled out Rs 2.16 lakh crore from Indian equity market between October 2024 and March 2025. Total FPI inflows into equity and debt amounted to Rs 30,950 crore in May with debt inflows at Rs 12,155 crore. There was heavy FPI inflow of Rs 29,044 crore into the debt market in March this year. Despite the inflows in May, FPI outflows from equity in 2025 so far were at Rs 92,491 crore. 'Global macros like declining dollar, slowing US and Chinese economies and domestic macros like high GDP growth and declining inflation and interest rates are the factors driving FPI inflows into India,' said a leading research firm in its report. India's better-than- expected GDP growth in Q4 of FY25 at 7.4 per cent is an indicator that growth is rebounding and this can lead to revival of corporate earnings in FY26. While FPIs are likely to continue their investment in India, at higher levels they might sell since valuations are getting stretched. In May itself, India witnessed bouts of sharp selloff from FPIs on account of Indo-Pak tensions and the latest being rising US Treasury yields. On May 21, FPIs sold Indian equities worth Rs 10,000 crore in a single day. 'In the near term, there can be some headwinds on account of global geopolitical uncertainties but long-term outlook for Indian continues to remain intact with the markets continuing to factor in strong growth for Indian economy,' says Vaqarjaved Khan, senior fundamental analyst, Angel One Ltd. According to the NSE, FPI ownership in NSE-listed companies had been declining since March 2023 — barring a brief uptick in September 2024 — amid continued volatility in foreign flows. This reversed slightly in March 2025, with FPI share rising 12 bps quarter-on-quarter to 17.5 per cent, driven by gains in private banks where FPIs have high exposure. Excluding financials, FPI share fell 26 bps to a 13-year low of 15 per cent. FPIs also increased exposure to microcaps, with their share in companies outside the Nifty 500 hitting a 10-quarter high. Their holding in the Nifty 50 stayed flat at 24.3 per cent, while it fell 28 bps in the Nifty 500 to 18.5 per cent. Despite the recent resurgence in FPI inflows, near-term uncertainties such as geopolitical risks, rising US Treasury yields, any slowdown in earnings in India can hurt FPI inflows, Khan said. India's long term growth story backed by consumption and inhouse manufacturing continues to remain intact. Meanwhile, India's corporate earnings over the next 3-5 years is expected to compound at a growth rate of 14-17 per cent. Hence, whenever valuations become attractive, FPI inflows during such periods will see a huge boost like the recent one in April and May, Khan said. FPI flows in May till date were positive for all key emerging markets except Thailand. India, Brazil, Indonesia, Malaysia, Philippines, Taiwan and Vietnam witnessed inflows.
The Hindu
3 days ago
- Business
- The Hindu
FPI inflows into equities at 8-month high in May 2025
Foreign Portfolio Investors (FPI) invested ₹19,860 crore, the highest in eight months, in May, according to data from NSDL. Foreign investors invested five times more than they invested in the previous month into Indian equities. The FPI investments came in positive for the second consecutive month in May after recording a net outflow for three consecutive months. This assumes significance as at the beginning of the calendar year 2025 and the better part of FY25, foreign investors were net sellers of Indian equity. The increase in foreign investor inflows came on the top of increasing returns in the domestic markets. Nifty increased 6% in March 2025, the highest in monthly return since July 2024. A combination of correction from the post-COVID rally, and the uncertainty around U.S. President Donald Trump's trade policies contributed to the net selling as foreign funds invested in U.S. bonds and exited the Asian stock markets due to tariff uncertainty. Liberation Day tariffs further increased the uncertainty as major economies were expected to be hit. The 90-day pause, however, cooled the uncertainty and with a trade deal between the U.S. and India imminent, market confidence returned to India. At the domestic level, a less-volatile rupee, softening inflation and improving GDP growth has led to the return of foreign money into the Indian equity market. This moderation in global risks to India's growth and improving state of domestic economic indicators may have instilled confidence in foreign investors, according to analysts
