Indian Indices Open On A Negative Note

Asian shares are trading on a negative note today. The Nikkei 225 is down 0.3%, while the Hang Seng is down 2.4%. The Shanghai Composite is trading down by 1%.

Back home, India share markets have opened the day on a negative note. The BSE Sensex is trading down by 155 points (down 0.4%) while the NSE Nifty is trading down by 49 points (down 0.5%). The BSE Mid Cap index and the BSE Small Cap index have opened the day on a flat note.

Sectoral indices have opened the day on a mixed with IT stocks witnessing maximum buying interest. While metal stocks, auto stocks and energy stocks have opened the day in the red.

The rupee is trading at 69.63 to the US dollar.

In the news from currency space, the rupee has kicked the year 2019 on a strong note. This comes as it built up gains on the previous session and closed on a positive note yesterday against the US dollar.

Indian rupee closed stronger on Monday following gains in its Asian peers but remained worst performer in Asia for 2018 in eight years.

The currency closed at 69.77 a dollar, up 0.2% from the previous close. It opened at 69.79. The 10-year gilt yield closed at 7.369% from its previous close of 7.385%. Bond yields and prices move in opposite directions.

So far this year, the rupee was Asia's biggest depreciated currency, down nearly 8.5%.

Foreign investors have pulled out over US$11 billion from local equity and debt market, year to date. Last time the home currency was weakest in Asia in 2011, down by nearly 15.8%.

Since the start of 2011 till date, the rupee has depreciated 36% and has been weakening every year, except in 2017. The rupee appreciated nearly 6.3% in 2017, its biggest yearly jump since 2007.

The depreciation in the rupee is more or less in line with the trend across emerging market currencies. Most emerging market currencies have depreciated over the eight-year period between 2011 and 2018 end.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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