The key benchmark indices opened firm playing a catch-up with its global peers as it reopened after a two-day closure on account of local holidays. Meanwhile, Asian shares edged lower on Friday on profit booking ahead of key US jobs data. Wall Street declined on Thursday on caution ahead of a key labor market report.
Foreign institutional investors (FIIs) bought Indian shares worth Rs 620.90 crore on Tuesday, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) purchased shares worth Rs 101.91 crore on that day. At the time of writing, India's key benchmark BSE Sensex rose around 71 points at 16747.72 while S&P CNX Nifty is higher by almost 21 points at 5022.40.
The European unit remained relatively steady in early Asia today, having dropped to a 3-week low of 1.4227 yesterday, with the pair coming under pressure on the back of an unexpected downward revision to EU Manufacturing PMI, which fuelled double dip recession fears. However, euro losses were limited today as market attention turned to a closely watched U.S. employment report. The single European unit is currently seen quoting at around 1.4269 versus the US dollar.
The US dollar index which measures the performance of the U.S. unit against a basket of six currencies is up by 0.09% at 74.55. DXY Index traded with a stronger bias against the majors for a third session on Thursday, rising to as high as 74.71, its strongest reading in around 3-weeks. Among Asian currencies, the Taiwan dollar added 0.23% at 29.02, the South Korean won is up by 0.16% at 1063.00 and the Indonesian Rupiah is higher 0.13% at 8518.75 as against the US dollar.
In commodities, gold traded in a narrow $1813 - $1830 band on Thursday as demand for the safety of metal amid rising aversion in global markets was largely overshadowed by strength in Dollar across the board. Meanwhile, better US data releases saw crude oil rally to as high as $89.91, but it fell back below the $89 levels as the NY session progressed, pressurized by slide across the Wall Street. The key economic releases scheduled for the global day include UK Construction PMI and US Non-Farm Payrolls, Unemployment rate.
In the domestic currency futures market on the NSE, the front month 27th September 2011 contract opened on Friday at 46.04, higher than spot market rupee. The contract hit an intra day high at 46.05 and registered a low at around 45.95 so far during the day. Meanwhile, euro- rupee contract fell down 1.20% to 65.63 from 66.43 in the previous session. The JPY/INR contract is down 0.28% at 59.85 from 60.02 while the GBP/INR contract lost 0.89% at 74.49 from 75.16 at close on Tuesday. At the time of writing, the NSE as well as MCX September 2011 USD/INR contract, was trading at around 45.98, lower by around 13 paise or 0.29% as compared to previous close at 46.11.
RBI Reference Rate
Date USD GBP EURO YEN
30-Aug-11 46.02 75.43 66.70 59.98
% Change* -0.32 -0.37 -0.02 -0.33
*As against previous working day