INR opens stronger at 71.68 as against yesterday’s close of 71.73. On the lower side, we may see around 71.45 and on higher side around 71.80. Yesterday were market talks of USD inflows on account of Paytm fund raise and also some inflows on account of Arcelor Mittal deal. We also saw public sector banks buying USD at the lower end of the price range. The GPI inflows in equity markets are also strong. In the month till date, it has been around USD 2.2 bn
It appears that in the absence of any trigger INR is range bound. The next big trigger could be GDP numbers which are slated to release on the 29th Nov i.e. Friday.
Globally sentiment seems to be bullish on the back of many M&A deals (LvMH buying Tiffany; Charles Schawb buying Ameritrade and Novartis know buying medicines company). The metal prices also trading with gains, hoping a quick announcement of US-China phase one deal.
We continue to suggest to hedge near-term imports using plain call options at all strike around 71.50