Market Highlights & Commentary:
- INR likely to start the day around 69.35-69.40 and stay in this range before RBI monetary meeting outcome scheduled at 230 PM. We expect RBI to cut repo rate by 25bps to 5.75% in order to increase market liquidity. Latest GDP growth rate remained below market expectation and this can be one of the key reason as why policymaker may consider lower borrowing rate. A large part of the cut is already discounted and INR may move if RBI were to announce any steps to further increase liquidity or steps to bring relief to NBFC crisis. Range for the day could be 69.10 to 69.60
- Yesterday DHFL defaulted on dues and now liquidity issue is turning into solvency issues
- In overseas market, USD traded mixed against other major currencies. JPY surged as investors shifted to safer assets as amid of rising concern over U.S-Mexico tension.
- Oil price continued to trade around 60+ levels as market a wait fresh trigger. Falling global demand and slowing to growth has lead oil prices to slip below 62 levels. Technically prices may slip lower around 55 levels, if price fails to find support above 60 in coming days.
- This morning most of the Asian currencies and equities are mixed.
- Exporters are suggested to cover receivables on major upticks around 69.70+ while importer may target near to 69.00 levels for the day.