Indian shares hold steady; rupee breaches 80/dollar

Indian shares were muted on Tuesday, looking for direction amid the onset of earnings season, while the rupee surpassed the psychological mark of 80 against the dollar to hit a record low.

The NSE Nifty 50 index (.NSEI) was up 0.08% at 16,295.60, as of 0509 GMT, while the S&P BSE Sensex (.BSESN) rose 0.12% to 54,584.43. Both the indexes rose more than 1% in the previous session, with the Nifty hitting its highest since June 10.

Asian shares slipped, following overnight declines on Wall Street, and the dollar hovered below last week’s peak, with the main focus on the earnings season.

“The overall market setup looks decent. Concerns over inflation data are now out of the way and the (scaled down) expectations of U.S. Federal Reserve rate hike is not negative for markets,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

“Monsoon has been progressing well, foreign investors’ selling has come down … The results season is picking up and comments and outlook from the companies will be a key driver for the markets going forward,” Khemka added.

Consumer giant Hindustan Unilever (HLL.NS) will announce its quarterly results later in the day and investors will look for cues on the impact of higher inflation and demand on its earnings. Its shares were last down 0.3%.

Meanwhile, the partially convertible rupee extended its record-setting spree against the dollar, hitting an all-time low for the seventh straight session. 

“The depreciating currency is a concern. The bigger concern is rising crude prices, which puts a lot more pressure on the currency due to more dollar outflows,” Khemka said.

Satellite communication systems provider Nelco (NELC.NS) rose 5% after reporting a surge in June-quarter profit.

Source By: Reuters

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