Market Highlights & Commentary:
- INR likely to start the day stronger around 69.20-69.25 as against yesterday’s close of 69.23 and may trade the day 68.90-69.32 under two way price action. If INR breaches below 69.00 levels, we may see RBI back in action to cap INR appreciation.
- Yesterday RBI concluded its 3 days monetary policy review by a 25bps rate cut to 5.75%. Market reaction remained limited as the move was already discounted due to falling growth and lower inflation. However, no steps to stem NBFC liquidity crisis led to sharp fall in equities.
- The important aspect of policy outcome was change of stance from “neutral” to “accommodative“, indicating RBI may not raise rates in coming months and may that have more cuts.
- In overseas market, USD continued to trade mixed ahead of NFP data scheduled to be released later in the day. Crude saw mild come back from low of about 60 and is not at about 62.5
- Exporters are suggested to cover near term exports on major upticks around 69.50-69.60 while importers may around 68.95-69.00 levels.
- This morning most of the Asian currencies and equities are mixed