Nifty & USD/INR Report 6th June, 2012

Daily Nifty Analysis

Nifty Analysis_06.06.2012_xDirect India

The Indian equity markets ended flat however the bias on the same remained on the positive bias as the speculation of quantitative easing made spillovers onto the Asian markets. The robust data on ISM figures even from the US actually made a drastic recovery towards the upside which gave enough boost to the equity markets. At the close, the benchmark 30-share index, BSE Sensex gained 32.24 points or 0.20% at 16,020.64 with 188 components registering rise. Meanwhile, the broad based NSE Nifty climbed by 15.15 points or 0.31% at 4,863.30 with 30 components posting rise.
The Indian markets are likely to remain choppy as European concerns bloats up with concerns of Greece still looming in and where Moody’s downgrading German banks ahead of the EU Summit is also weighing more on the bearish front.
Nevertheless, the rally could be seen another opportunity to go on the sell-side, as there’s absence of any sort of triggers for further flow into the market. Before the RBI meet the rally towards   4800-4900 could be  a  good opportunity for another round of selling bout.

View on Indian Rupee

USD/INR Report_06.06.2012_xDirect India

The Indian Rupee once again witnessed a volatile trading session with the currency opening in the positive territory though couldn’t managed to hold on to its early gains. The home currency rise in the early part of the trading session was led by speculation the central bank will lower borrowing costs in its forthcoming monetary policy meeting, reducing the rate for the second time in 2012 to support economic growth. At the end of the day,, the INR finished at 55.64 at the spot market against Monday’s close of 55.66. The Indian stock markets too followed a similar trend wherein they opened with healthy gains tracking, however gave away most of the gains to finish modestly in the green. The BSE Sensex and the NSE Nifty both were higher by around 0.2% at close.

Report By

xDirect India

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