The Reserve Bank of India's 3-year dollar-rupee buy-sell swap witnessed robust demand, attracting bids of $29.9 billion against a notified amount of $10 billion. The cutoff premium surged to 728 paise, reflecting increased pressure on the rupee compared to the previous year. This higher premium indicates a greater cost for the RBI to purchase dollars.
Technical indicators reveal a weakening undertone in India's top 500 shares, with a majority trading below key moving averages. This broad-based weakness, exacerbated by trade deal uncertainties and global concerns, suggests sellers are dominating across sectors. While oversold conditions may present buying opportunities for quality stocks, a decisive upward trend is not yet anticipated.
Economists anticipate the Reserve Bank of India (RBI) will introduce more money into the financial system. With inflation expected to rise, interest rates are likely to stay the same in upcoming policy meetings. This means attention will shift to how much money the RBI will add and when it will do so.
