INR opens flat at 71.71 and now 71.68 and looks mildly strong as Asian markets are rallying on hope of US-China trade deal. Range for the day could be 71.60 to 71.80.
Our research shows that Karvy issue may not lead to any major equity sell off as the issue was old and came in media, only recently. Also there is news of inflow from USD 500 mn ( approx) SBI perpetual bond.
Today most Asian equities are trading with gains and currencies are flat. We suggest to hedge near term imports using plain call option at stroke closer to 71.50