Share markets in India are presently trading on a positive note. Sectoral indices are trading in green with stocks in the metal sector and consumer durables sector witnessing maximum buying interest while IT stocks are witnessing selling pressure.
The BSE Sensex is trading up by 347 points (up 1%), while the NSE Nifty is trading up by 99 points (up 0.9%). The BSE Mid Cap index is trading up 0.4% and the BSE Small Cap index is trading up by 0.2%.
In the news from the economy, the rupee rose to a three-month high against the US$ in early trade today while bond yields were at their lowest levels since early May as most Asian markets rallied following the US Federal Reserve's comments, helping boost appetite for riskier assets.
Fed chairman Jerome Powell said that the Fed's policy rate is now 'just below' a level that neither brakes nor boosts a healthy economy. The comments boosted gains in US stocks and pushed down the dollar.
Reportedly, minutes of the FOMC's last meeting are set to be released later today, which may give more clarity on the future rate path.
On Wednesday, the rupee had surged by 17 paise to close at 70.62 against the US currency as global crude oil prices slipped below the US$ 60 per barrel mark amid a smart recovery in domestic equity markets. Robust foreign fund inflows and easing crude prices also supported the rupee.
At the time of writing, the rupee was trading at 69.90 against the US$.
Also, speaking of rupee, note that the Indian rupee is the worst performer in Asia in 2018. Take a look at the chart below:
Indian Rupee is the Worst Performing Currency in Asia
Here's what we wrote about rupee and its repercussions in one of the edition of The 5 Minute WrapUp...
- The rupee is under pressure due to a strong dollar and high oil prices. Similarly, the spill-over from the emerging-market turmoil in Argentina and Turkey is weighing on the rupee.
The falling rupee is also triggering sales of bonds and stocks, which in turn is further pressuring the rupee.
Nevertheless, last week, the government announced several measures. This includes cutting down non-necessary imports, removal of withholding tax on rupee-denominated bonds, and easing overseas borrowing norms.
That said, in the near term, the rupee being under pressure could benefit export-oriented businesses.
Moving on to the news from the banking space, Yes bank share price is witnessing selling pressure today. The shares plunged to their lowest levels in over two years after credit rating agencies ICRA and CARE ratings downgraded the bank's debt instruments.
ICRA downgraded domestic long-term ratings of the bank's senior debt instruments to 'ICRA AA' from 'ICRA AA+' and its subordinate debt instruments to 'ICRA AA-' from 'ICRA AA'.
Meanwhile, CARE Ratings cut domestic ratings of Yes Bank's senior debt instruments to 'CARE AA+' from 'CARE AAA' and subordinate debt instruments to 'CARE AA' from 'CARE AA+'.
Earlier this week, Moody's also downgraded the bank's foreign currency issuer rating and changed the outlook on the bank to 'negative' from 'stable'.
Yes bank share price has fallen as much as 19% in the past three days and 48% this year and are presently trading 6% down.
To know more about the company, you can access to Yes bank Q2FY19 result analysis and Yes bank Stock Analysison our website.
To know more on what moved the Indian stock markets today, you can check out the most recent share market updates here.
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