Business News Highlights: RBI Monetary Policy Meeting, Domestic PMI Data, Global Trends To Drive Markets This Week
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The two key equity benchmarks, Sensex and Nifty, on Friday, closed higher following a fall in crude oil prices globally. The S&P BSE Sensex soared 320 points to end at 65,828. On the other hand, the NSE Nifty50 quoted 19,638, up 115 points. The domestic indices surged to 66,152 and 19,726 during intraday trading. On the 30-share Sensex platform, NTPC became the lead gainer, up 3.30 per cent. Tata Motors, Sun Pharma, Tata Steel, SBI, UltraCemco were among the other gainers. On the downside, HCL, PowerGrid, TechM, Infosys, Titan, Nestle emerged losers.
Global oil benchmark Brent crude declined 0.49 per cent to $95.28 a barrel. Meanwhile, the rupee appreciated 14 paise to settle at 83.05 (provisional) against the US dollar on Friday, boosted by a firm trend in equity markets and a sharp correction in the greenback against major rivals overseas. However, selling pressure from foreign equity investors and rising crude oil prices in international markets weighed on the domestic unit, forex traders said. The rupee opened strong at 83.13 against the US dollar and moved in the range of 83.03 to 83.13 against the greenback. It finally settled at 83.05 (provisional), registering a gain of 14 paise from its previous close. On Thursday, the rupee settled 3 paise higher at 83.19.
The markets will observe a holiday on Monday on the occasion of Gandhi Jayanti. However, investors have some major events to look forward to for the rest of the week including the RBI’s decision on interest rates, macroeconomic data, global trends, and foreign investors’ trading activity.
The Reserve Bank of India is scheduled to hold it’s bi-monthly Monetary Policy Committee (MPC) meeting from October 4-6 this week. Experts believe the banking regulator will maintain the status quo on policy rates for the fourth consecutive time, as retail inflation remains high and the US Federal Reserve has given a hawkish stance for the extended period.
Further, India is expected to release it’s manufacturing PMI data for September on October 3, which is projected to fall from 58.6 a month ago to 57. Additionally, the services PMI data for September is also set to be announced on October 5 this week.
Analyst Shrikant Chouhan, head of research (retail) at Kotak Securities Ltd., said, “While global cues will continue to dictate trends in local markets, focus will shift to RBI's monetary policy announcement on Friday. Although the market is expecting a status quo on interest rates, global concerns like rising US dollar index and bond yields coupled with surging crude oil prices continue to weigh on investors' minds. Further, persistent FII selling in emerging markets, including India, in September has taken a toll on markets.”
Additionally, auto companies will also remain in focus as they start announcing their monthly sales data. Commenting on the foreign investors, V K Vijayakumar, chief investment strategist at Geojit Financial Services, noted, “FPIs (Foreign Portfolio Investors) turned sustained sellers in September. The sustained selling has been in response to steady dollar appreciation which took the dollar index close to 107 and the steady rise in the US bond yields which took the US 10-year bond yield to around 4.7 per cent. The spike in Brent crude to USD 97 also weighed on FPI selling.”
Globally, manufacturing and services PMI data from different countries will also be monitored by investors.
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Nepal’s tourism industry bounced back in 2023 as the country welcomed 7 lakh tourists in the first nine months of 2023, after recovering from the Covid-19 pandemic, official data released by the Nepal Tourism Board revealed. The board stated that from January to September this year, 692,372 tourists entered the country by air, while in September 2019, it received 92,604 foreign tourists by air.
Net Office Leasing In India Increases 5% In July-September Across 7 Cities, Touches 18-Month High
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