Motilal Oswal: Rupee Sails Through Covid-19 Turmoil 
An Indian 2,000 rupee, bottom, and 500 rupee banknotes are arranged for a photograph in Bangkok, Thailand. (Photographer: Brent Lewin/Bloomberg)

Motilal Oswal: Rupee Sails Through Covid-19 Turmoil 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

In the last couple of months rupee has been consolidating in a broad range of 74 and 76 despite sharp gains in domestic and global equities.

One of the major reasons for the rupee appreciation has been the rush of flows into Indian equities. Fund inflow in the equity segment has been to the tune of $4.9 billion in the last three months and a few big corporates have raised dollars via stake sale.

Reliance being the major one has managed to raise over Rs 1 lakh crore by stake sale in Jio leading to a surge in rupee. If it's been flows that has lead the rupee higher.

The Reserve Bank of India on the other hand has been intervening consistently to restrict any major appreciation.

Latest RBI data suggest that foreign exchange reserves are at record levels of $516 billion and looking at the current trend it seems that RBI is in no mood to slow down the pace of dollar purchases.

Market participants are also keeping an eye on the ongoing tension between India and China as it could disturb the overall market sentiment in the short term.

Click on the attachment to read the full report:

Motilal Oswal Currency Insight 27july2020.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.