Stock markets in India are witnessing selling pressure in the afternoon session. Among the sectoral indices, information technology and FMCG stocks are witnessing maximum selling pressure. While, capital goods and realty stocks are trading in green.
The BSE Sensex is trading lower by 100 points (down 0.3%), and the NSE Nifty is trading lower by 30 points (down 0.3%). Meanwhile, the BSE Mid Cap index and the BSE Small Cap index are trading up by 0.8% & 1% respectively. The rupee is trading at 73.84 to the US$.
In the news from the macroeconomic space, the government yesterday issued a statement stating its respect for the Reserve Bank of India's (RBI) autonomy.
This came as the government said that the autonomy for the central bank, within the framework of the RBI Act, is an essential and accepted governance requirement and governments in India have nurtured and respected this.
It also underlined that in their functioning, both the government and the central bank have to be guided by public interest and the requirements of the Indian economy.
The statement stated... 'For the purpose, extensive consultations on several issues take place between the government and the RBI from time to time. This is equally true of all other regulators. Government of India has never made public the subject matter of those consultations. Only the final decisions taken are communicated. The government, through these consultations, places its assessment on issues and suggests possible solutions. The Government will continue to do so.'
The above development came in as a welcome breather for the economy and also helped Indian stock markets trade on a positive note yesterday.
In the news from currency markets, market participants will be tracking rupee as it traded on a volatile note yesterday.
The domestic currency yesterday hit the 74-mark against the US dollar. Most of this selling pressure was seen on the back of strong demand for the American currency from importers.
However, the rupee clawed back some lost ground on signs of easing tension between the government and the Reserve Bank of India (RBI).
Note that, the rupee is the worst performer in Asia in 2018. It has fallen by around 12% against the US dollar this year.
Indian Rupee is the Worst Performing Currency in Asia
This selling pressure is seen on the back of 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.
However, in the near term, the rupee being under pressure could benefit export-oriented businesses.
The recent Smart Money Secrets recommendation will benefit from the rupee depreciation.
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To know what's moving the Indian stock markets today, check out the most recent share market updates here.
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