Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Indian equity markets bounce back
Tue, 9 Jul Closing

Indian equity markets got off to a flying start on Tuesday on back of positive global cues and recovery of Rupee. Fresh buying by funds and retail investors, tracking a firming trend on other Asian bourses, following overnight gains in the US markets, supported the trading sentiment throughout the day. While the BSE-Sensex closed higher by 114 points, the NSE-Nifty closed higher by 47 points. Both the BSE Mid Cap and the BSE Small Cap indices closed on a positive note. Consumer Durables and Power stocks were the biggest gainers.

As regards global markets, Asian indices closed in the green. European indices have opened in the green. The rupee was trading at Rs 60.35 to the dollar at the time of writing.

The regulatory authorities have finally woken up to arrest the steep decline of the rupee, which fell to a record low against the dollar. The Reserve Bank of India (RBI) has banned banks trading in domestic currency futures and the exchange-traded options market on their own. They will, however, be allowed to trade on behalf of their clients. Market regulator, SEBI doubled the margin requirement on the domestic dollar-rupee forward trade, which means investors will now have to pay twice as much in margins for a transaction at the time of the trade itself. The margin requirements are different across various categories and they are being increased by 100% of the present rates for rupee-dollar derivative contracts.

According to a leading financial daily, State Bank of India (SBI) is planning to raise interest rates for overseas credit to protect its profit as the rupee's plunge raises the risk of borrowers defaulting on their loans. Overseas loans accounted for more than 16% of State Bank's USD $177 bn loan book as of 31 March, 2013. The failure by companies to protect against currency swings, combined with rising US Treasury rates, will boost average costs for dollar-denominated debt. Raising lending rates for debt taken abroad may help State Bank improve its net interest margin for international loans.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Indian equity markets bounce back". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 20, 2018 (Close)