Morning Alert..
Rupee settles at fresh closing low of 83.66 against the US dollar
The rupee settled at a new closing low of Rs 83.66 against the dollar, due to the buoyant greenback and overnight rise in crude oil prices, said dealers. It had hit an intraday record low of Rs 83.67 on June 20. The previous record closing low was also witnessed on the same day at Rs 83.65. The rupee had settled at 83.58 on Tuesday. Money markets were closed on Wednesday on account of Muharram. “The rupee traded weak by 8 paise to Rs 83.66, driven by volatility triggers and global market uncertainties. Despite the overall positive trend in the Indian markets, the rupee faced weakness due to US-China trade jitters, which may rise again with the potential re-election of Trump. However, Reserve Bank of India’s (RBI’s) norms and interventions have kept the rupee stable. Expenditure and income numbers in the Union Budget are expected to introduce further volatility to the rupee.
NRI deposits see $3 billion inflows in April-May FY25, shows RBI data
Outward remittances under the Reserve Bank of India’s (RBI’s) Liberalised Remittance Scheme (LRS) declined by over 16 per cent in May 2024 from the year-ago period due to the base effect. The LRS scheme was introduced in 2004, allowing all resident individuals to remit up to $250,000 per financial year for any permissible current or capital account transaction, or a combination of both, free of charge. In the initial phase, the scheme was introduced with a limit of $25,000, which was revised gradually. According to the latest RBI bulletin, remittances under the scheme stood at $2.42 billion in May 2024, 16.18 per cent lower than the year-ago period. During the Union Budget for FY23, the government proposed to raise tax collection at source (TCS) to 20 per cent from 5 per cent on amounts exceeding ~7 lakh for all purposes, except for education and medical treatment. The revision was scheduled to be effective from July 1, 2023. The proposal during the Budget led to a 41 per cent year-on-year (Y-o-Y) increase in remittances under the scheme in May 2023 from the year-ago period to $2.88 billion. However, the Ministry of Finance later deferred it to October 1, 2023.
- Global market action*
Dow Jones – Up by 0.10% or 40.31 points
FTSE – Up by 0.21% or 17.43 points
CAC – Up by 0.21% or 15.74 points
DAX – Down by 0.45% or 82.54 points
Gift Nifty – Down by 0.03% or 6.50 points
FII/DII activities
FII – Bought 5483.63 Cr worth of shares
DII – Sold 2904.25 Cr worth of shares.
Stocks with high delivery percentage
Balkrishna Industries Ltd – 84%
Sapphi Foods India Ltd – 83.3%
Samvardhana Motherson International Ltd – 82%
Avenue Supermarts Ltd – 80.6%
Grindwell Norton Ltd – 78.9%
Primary market activities
IPO opening today
Sanstar Ltd (Main board) – Issue size 510.15Cr
Listing today
Sahaj Solar Ltd (NSE SME) – Subscribed 507.21x
Commodities updates
Gold – Rs 74187/10gm, Silver – Rs 91795/kg, Brcrude – Rs 6973/barrel, Copper – Rs 828.45/kg.
Corporate News
Aurobindo Pharma board approves share buyback plan worth Rs 750 cr.
Bank of India raises Rs 5,000 crore via 10-year infrastructure bonds.
CEAT Q1 results: Profit rises 2.74% to Rs 149.79 cr, revenue up 8.79%.
