Mumbai/Hyderabad: Investors Across Geographies and Assets were Jittery on Monday as Us President Donald Trump Continued to Annance New Measures, Mostly related to trade tarifs. DURING The Day, The Rupee Weakened to a New Record Low at Close to 88-to-A-Dollar Mark But Closed Substantily Off that Mark, AT 87.48, While Gold Prices Inched Closer to the RS 88,000-10-10-magic A Record High Level. On Dalal Street.
However, small and midcap stocks were affected more than blue chips by the selloff LED by Foreign Funds. BSE's Midcap Index Was Down 2.1% While Smallcap was down 2.3%.
On Monday, Foreign Portfolio Investors Were Net Sellers at Rs 2,464 Crore, BSE Data Showed. So far this year, FPIS has Net Withdrawn Nearly Rs 90,000 Crore from the stock market alone, data from nsdl and bse showed.
This outflow of Foreign Funds also had a negative impact on the rupee-dollar exchange rate, which is Hitting new record low levels on a regular basis.
According to Jateen Trivedi of Lkp Securities, The Rupee's Weakness was mainly due to the recent Continued outflow of Foreign Funds Post-Budget and RBI Policy as Neither of the events Forms or Structural Shifts Beyond Tax Sops for Retail Investors and A Minor Cut In Interest Rate by the Central Bank. “With Ongoing Capital Outflows, Global Trade Tensions, and a Strong Dollar, Rupee Volatiity is Expected to Persist in the 87.25 – 88 range.”
In the bullion market, propelled by the trump effect, gold breeded the $ 2,900/OUNCE MARK for the first time ever to hit an intraday high of 2,911 in international spots late on manday. This rally sent prisles in locally spot markets soking by over Rs 1,000 in a single day to over Rs 87,250. On MCX, The Futures Prisis for April Delivery Had Hit An All-Time High at Rs 85,835.
HDFC Securities attributed the latest high to increase Fund Flow Towards Gold as a Safe Haven Asset In Response to TRUMP's Latest Decision to Impose 25% Tarifs on All Steel and Aluminum IMPORTS SOLL STEEL and Aluminum IMPORTSTES.
In Aug 2020, when gold was at its peak of $ 2,019, Rupee was peged at Around 75 to the Dollar. Indian Bullion & Jewellers' Association's Surendra Mehta Said The Sudden Surge in Pries Post Trump's Comeing to Power Has Driven Customers Out of the Market. “It's a one-sided sentiment. There are no customers in the market.
(Tagstotranslate) Business News (T) Trump Trade Tariffs (T) Rupee to Dollar Exchange Rate (T) Indian Stock Market News (T) Gold Price in India (T) Foreign Portfooo Investors (T) Dalal Street
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