Market Wrap - Market participants remain cautious ahead of the US FOMC outcome

Abhishek Goenka IFA Global

The USDINR pair ended the session lower by 8 paise at 71.25 due to some foreign banks sold the greenback, likely on behalf of foreign portfolio investors who may have subscribed to the seventh tranche of Central Public Sector Enterprises-Exchange Traded Fund. The risk appetite improved as fears about novel coronavirus impacting global growth eased. Recovery in offshore Chinese yuan, dollar sales by foreign banks, likely for foreign fund inflows supported the rupee. Market participants remained cautious ahead of the US FOMC outcome later today. The Fed Reserve is anticipated to keep its policy unchanged, with a focus on any comments about the balance sheet and whether their bill-buying ops are merely technical or are providing monetary stimulus. While Equity indices ended higher breaking two-day losing streak gaining by 0.6%. The benchmark bond yield ended up flat to 6.57%. The dollar index was trading around fresh yearly highs around 98.10 levels. The Euro and Pound are trading flat ahead of FOMC meeting.

USDINR CHART (Daily Chart)

Indian equities shifted their focus back to December quarter earnings. While the indices held their gains for the most part of the day, volatility was seen in the last hour of the trading session, ahead of the expiry of the January series of F&O contracts due tomorrow. The markets are likely to remain volatile ahead of the Union Budget on Saturday. At close, the Sensex was up 231.80 points or 0.57% at 41198.66, and the Nifty was up 73.70 points or 0.61% at 12129.50.

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Author

Abhishek Goenka

IFA Global

Mr. Abhishek Goenka is the Founder and CEO of IFA Global. He pilots the IFA Global strategic direction with a focus on relentlessly improving the existing offerings while constantly searching for the next generation of business excellence.

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