Indian equities

The rupee movement against the dollar will be triggered by the inflation numbers of the US which are expected to be out later on Wednesday. "Rupee traded with minor losses falling below 79.65 as the dollar index traded positive above $108 rupee range can be seen between 79.25-79.75," said Jateen Trivedi, Vice President, Research Analyst, LKP Securities.

While the Nifty-50 declined 15 per cent from its October 2021 peak against a 20 per cent decline in midcaps and 28 per cent decline in smallcaps, the broader market has witnessed a much sharper sell-off. NSE Smallcap 100 index is down even vs December 2017 levels as per a report by Motilal Oswal Financial Services. India has outperformed key global markets in June'22 amid various challenges.

BSESENSEX gained 179.95 points or 0.34 per cent to close at 52,907.93 points while NIFTY gained 52.80 points or 0.34 per cent to close at 15,752.05 points. The broader indices saw BSE100, BSE200 and BSE500 gain 0.32 per cent, 0049 per cent and 0.55 per cent respectively. BSEMIDCAP was up 0.26 per cent while BSE SMALLCAP gained 1.17 per cent.

The Indian rupee opened at Rs 78.50 and went down to touch a fresh record low of 78.68 against the dollar. As crude prices increase, the rupee may further slip down, analysts said. The Reserve Bank of India (RBI) intervened by selling dollars to stabilise the rupee rate but the demand for the US currency was high.

Sensex closed at 51,495.79 points, down 1,045.60 points, or 1.99 per cent, whereas Nifty closed at 15,360.60 points, down 331.55 points, or 2.11 per cent. The decision by the US Federal Reserve to raise the interest rate by 0.75 percentage points, the highest on-shot increase since 1994, to tackle inflation that is at its highest in 40 years, also weighed on the stocks.

Indian investments grew by 96 per cent over 2020 (excluding the mega deals of Jio Platforms and Reliance Retail). Much of the deal activity was in consumer tech and IT/ITES sectors. The two sectors combined represented more than 60 per cent of the year's deal value, at nearly $44 billion, according to the annual India Private Equity Report 2022 by Bain & Company.

With Tuesday's slump, the indices declined for the seven out of the past eight sessions. Sensex closed at 52,693.57 points, down 153.13 points or 0.29 per cent, whereas Nifty closed at 15,732.10 points, down 42.30 points or 0.27 per cent. Any steep fall in the indices during the session was arrested due to a moderation in retail inflation in India in the month of May.

At 9.41 a.m., sensex was down 0.3 per cent at 52,672 points, whereas nifty 0.3 per cent or 15,732 points. Equity indices across the board witnessed a massive selloff on Monday after the US reported 40-year high inflation reading. However, the steep fall in the indices back home in India this morning was arrested due to a moderation in retail inflation in the month of May.

The rising inflation in the US also leads to the possibility of an even more aggressive policy tightening by the US central bank in the upcoming policy review meeting. With Monday's slump, the domestic indices declined for six out of the past seven sessions. Sensex closed at 52,846.70 points, down 1,456.74 points or 2.68 per cent, whereas Nifty closed at 15,774.40 points, down 427.40 points or 2.64 per cent.

The rupee closed Monday's trade at Rs 78.04 per US dollar, after depreciation as low as Rs 78.29 in intra-day deal. "There is no fresh trigger to predict if the rupee will be 79 or 80 unless and until there is a conflict between US and China with regards to Taiwan, other than that there shouldn't be any correction towards 77 or 77.50 in the spot," said Emkay Global Financial Services in a note.