Weekly Wrap: Rupee’s Best Week In 10 Months, Sensex Swings On Iran Tensions, GDP Estimates

Indian markets clocked its first weekly gains since Dec. 20. The domestic currency posted its best week in 10 months. And the Indian economy is expected to grow at its slowest pace since 2008-09.

Here’s what happened in the business world and across the globe between Jan. 6 and Jan. 10:

Best Week For Rupee In 10 Months

• The Indian rupee clocked its best week since March 15, 2019.
• The home currency appreciated 1.2 percent against the dollar at 71.
• The local legal tender was the best Asian currency this week.

India Set For Slowest Growth Since The Financial Crisis

The Indian economy is expected to grow at its slowest pace since 2008-09, indicating weakening consumption and stagnating private investment.

• GDP growth is seen at 5 percent in 2019-20 compared to 6.8 percent last year, according to the first advance estimates released by the Central Statistics Office.
• Gross value-added, which strips out indirect tax and subsidies, is expected to grow at 4.9 percent compared to 6.6 percent last year.
• The nominal GDP growth forecast as part of the first advance estimates is much lower than the 12 percent growth used by the government for its fiscal calculations when it presented its budget in July.

How Markets Fared This Week

Indian stocks, which remained volatile through the week, ended higher for the first time in three weeks even as geopolitical tensions escalated.

The Sensex rose 0.33 percent this week to close at 41,599.72 and the NSE Nifty 50 rose 0.25 percent at 12,256.50.

Seven of the 11 sectoral gauges compiled by the National Stock Exchange gained this week, led by the NSE Nifty Media Index’s 5.8 percent rally. The Nifty PSU Bank Index was the top loser, down 2.5 percent.

The broader market represented by the NSE Nifty 500 Index, too, rose 0.37 percent, led by a rally in Dishman Carbogen Amcis Ltd., Indiabulls Integrated Services Ltd. and Metropolis Healthcare Ltd.

Big Talking Points This Week

• Yes Bank’s board member resigns citing ‘deteriorating standard of corporate governance’.
• U.S. suspects Iran reprisal deliberately missed American troops.
• Amazon India signs long-term deals with Future Retail for online sales.
• Budget 2020: Government’s austerity drive — where can it cut spending?
• India eases coal mining laws to attract investment, participation in auctions.
• Carlos Ghosn goes on the offensive in first appearance since escape.
• Inflows into equity mutual funds rebound after three months of decline.
• Paytm targets to add 10 million merchants this year.
• Kashmir internet shutdown: Supreme Court says freedom of speech, business on internet a fundamental right.
• Managing state finances: States under ‘severe stress’, says Kerala FM Thomas Isaac.

Key Events To Watch Next Week

• Jan. 13: India to release CPI data for December
• Jan. 14: India to release WPI data for December
• Jan. 15: India to release trade data for December

Earnings Announced This Week

• Infosys

Earnings To Watch Next Week

• IndusInd Bank
• Wipro
• HCL Technologies
• HDFC Bank
• Reliance Industries
• Tata Consultancy Services