2 hrs ago
Indian Stocks Open Higher as Rupee Reaches Two-Month High
Indian shares started the day with gains, and the rupee became stronger.
One reason was that U.S. bond yields eased slightly.
Investors also paid attention to large amounts of money raised by banks through special facilities.
Banks mobilised $127 billion through the FCNR(B) scheme.
In total, $136 billion was mobilised under a concessional swap facility.
Dr. V K Vijayakumar said this could help keep the rupee stable.
A steadier rupee may make foreign investors more confident about investing in India.
He also said the money raised could help banks improve their earnings.
These factors were seen as positive for banking shares.
Indian stocks opened higher, while the rupee reached a two-month high.
Slightly lower U.S. bond yields were expected to improve market sentiment.
Banks mobilised $127 billion through the FCNR(B) scheme, above consensus estimates.
A total of $136 billion was mobilised under a concessional swap facility.
Analyst Dr. V K Vijayakumar said stronger rupee stability could support FII buying and banking stocks.
- Who
- Indian stocks, the rupee, banks, foreign institutional investors, and market analyst Dr. V K Vijayakumar.
- What
- The stock market opened higher and the rupee reached a two-month high.
- Where
- India's financial markets.
- When
- At the market opening described in the article; no specific date is provided.
- Why
- Slightly lower U.S. bond yields, strong mobilisation under the concessional swap facility and FCNR(B) scheme, and improving growth and earnings prospects supported sentiment.
Key facts
- Rupee performance
- The rupee reached a two-month high.
- Market opening
- Indian stocks opened in positive territory.
- Concessional swap facility
- $136 billion was mobilised.
- FCNR(B) mobilisation
- Banks mobilised $127 billion, above consensus estimates.
- U.S. bond yields
- A slight easing was expected to improve market sentiment.
- Foreign investors
- Improved rupee stability could encourage continued buying by foreign institutional investors.
- Banking stocks
- The mobilisation could help banks improve their net interest margins, according to Dr. V K Vijayakumar.
Quotes
Dr. V K Vijayakumar
Chief Investment Strategist at Geojit Investments Limited
“The implication of this from the market perspective is that the rupee will stabilise, imparting confidence to FIIs.”
timesnownews.com
Sources
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