Indian Markets Edge Higher Amid Earnings Recovery, Rupee Holds Ground

The BSE Sensex rose 0.46% to 84,950.95, while the broader NSE Nifty 50 index gained 0.4% to 26,013.45, as investors remained optimistic following a September-quarter earnings season that concluded without any major disappointments.

Rupee Stabilizes Amid Modest Dollar Inflows

The Indian rupee strengthened 0.13% against the U.S. dollar to 88.63, supported by modest dollar inflows. The currency managed to hold its ground despite persistent importer hedging demand and data showing India’s trade deficit reached a record high in October.

Government Bonds and Yields

The benchmark 10-year government bond (IN063335G=CC) was quoted at 98.5075 rupees, with yields up roughly 2 basis points at 6.5435%. Analysts noted that the Reserve Bank of India’s recent bond purchases appeared primarily aimed at replacing maturing holdings rather than actively suppressing yields.

Overnight Index Swaps and Call Money Rates

  • The one-year overnight index swap rate (INR1YMIBROIS=CC) remained largely flat at 5.47%.
  • The five-year swap rate (INR5YMIBROIS=CC) rose 2 basis points to 5.755%.
  • India’s overnight call money rate stood at 5.24%, while the overnight TREPS rate was at 5.12%.

Investors will continue to monitor macroeconomic data and RBI policy signals as markets digest recent developments.

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