Nifty, rupee weak on global cues, jewellery stocks plunge on gold curbs

Indian markets opened weak this morning as global markets ended in red on Monday. Worries about stress in China's banking system and the US Federal Reserve's plans to withdraw stimulus later this year pulled Nikkei below 13,000 today.

FP Staff June 25, 2013 09:27:27 IST
Nifty, rupee weak on global cues, jewellery stocks plunge on gold curbs

Indian markets opened weak this morning as global markets ended in red on Monday. Worries about stress in China's banking system and the US Federal Reserve's plans to withdraw stimulus later this year pulled Nikkei below 13,000 today.

While the Nifty opened flat at 5581, down 0.14 percent, the BSE Sensex was down 0.06 percent at 18527, in line with its Asian peers.

According to Sudarshan Sukhani of S2analytics.com, the market is likely to see some pullback today and traders should brace up for a relief rally.

Raghuram Rajan, Chief Economic Adviser blamed global factors mostly for the economy's current ills. But steps are being taken to put the wind back in the sails he said adding that the government wants to convince investors that it is valuable to stay for the long term or the medium term.

Nifty rupee weak on global cues jewellery stocks plunge on gold curbs

Reuters

Investors on D-street can take heart from Rajan's statement but Bernanke's words have spooked the foreign money bags in way that sent charts heading south and an about turn seems distant. FIIs remained net sellers to the tune of $459 mn of Indian equities and debt on Monday.

However, according to Morgan Stanley, India is better of than other emerging markets as it did not receive as much of the hot money as the other EMs. He sees money shifting from China to other emerging markets, especially India which as outperformed its peers in dollar terms year-to-date.

The rupee opened at 59.66 per US dollar, up 0.02 paise from the previous close as continuous outflow of dollars by foreign institutional investors(FIIs) sell-off in equities and bonds has put pressure on the currency.

However, rating agency Crisil expects the rupee to appreciate from the current lows to about 56 by the end of the fiscal as capital inflows resume and current account deficit softens this fiscal.The agency said the current capital flight from the country is a short-term phenomenon, largely an impact of possible tapering of economic stimulus by the US. It also noted that the government is pledging a slew of policy reforms to shore up investor sentiment, which would attract capital inflows.

Stocks in news

Videocon is likely to apply for banking licence today. It is set to bring in foreign bank for banking foray and will divest part stake to the banking partner. Videocon will hold majority stake and a separate subsidiary to be launched for banking foray. The stock is up 2.7 percent

IGL has hiked Delhi CNG price by Rs 2 a kg w.e.f. midnight to Rs 41.90/kg. Prices in Ghaziabad and Noida have been hiked by Rs 2.25. It has also hiked piped cooking gas price by Re 1 per unit in Delhi. The stock is down 3.42 percent .

Meanwhile, in its bid to find a cure for India's yellow fever, the government has found support from the country's biggest jewellers' association, All India Gems and Jewellery Trade Federation (AIGJTF) which has urged its members to stop selling gold bars and coins. Expensive gold imports have caused current account to flare up sending Rupee downhill. Gitanjali Gems was down 19.9 percent , while PC Jewelers was down 4.3 percent in morning trade on concerns the government measures could hit their businesses.

Updated Date:

also read

'Outright lies', says China on reports that it investigated weaponising coronaviruses in 2015
World

'Outright lies', says China on reports that it investigated weaponising coronaviruses in 2015

The US government reportedly obtained the documents, which were written by Chinese military scientists in 2015 as part of their own probe into the origins of COVID-19

Man kills six, then self, at Colorado birthday party shooting; governor terms deaths 'devastating'
World

Man kills six, then self, at Colorado birthday party shooting; governor terms deaths 'devastating'

The shooting happened just after midnight in a mobile home park on the east side of Colorado Springs, police said

Probe ordered after US player racially abused by Nicaraguan opponent at Futsal event
Sports

Probe ordered after US player racially abused by Nicaraguan opponent at Futsal event

A statement from US Soccer said CONCACAF had opened an investigation into the alleged incident, which occurred at Tuesday's game between the United States and Nicaragua in Guatemala City, won 4-2 by the United States.