DAILY MARKET REPORT: Tuesday - December 11, 2012
The Indian Rupee opened at 54.40 levels after closing yesterday at 54.49 levels. The Intraday range for the rupee is seen between 54.15 - 54.70 levels. The Bharti Infratel, is set to raise up to $825 million in what would be the country's biggest...
The Indian Rupee opened at 54.40 levels after closing yesterday at 54.49 levels. The Intraday range for the rupee is seen between 54.15 - 54.70 levels.
The Bharti Infratel, is set to raise up to $825 million in what would be the country's biggest initial share offering in two years. This is likely to be followed by a stake sale by the government in NMDC Ltd. The government expects to raise roughly $1.2 billion by selling a stake in the state-run miner.
The Asian shares and the Euro steadied on the expectation that the U.S. Federal Reserve will take fresh economic stimulus measures this week. The two days FOMC meet is starting from today. At the end of the second-day the Fed is expected to announce it will buy $45 billion per month of longer-dated Treasuries beginning in January to replace the current Operation Twist program, which expires at the end of December.
The Euro is trading stable at 1.29 levels after Mario Monti's decision to step down as Italy's Prime Minister, the rise in European bond yields and the decline in Germany's trade and current account surpluses.
The EU Leaders summit starts on Thursday and Friday and the investors will be keenly eyeing the December 16th general election in Japan, there is no shortage of event risks that could increase the volatility.
The Italian 10yr government bond yield surged 36bp. Spain's 10yr yield up 21bp but Greece down 65bp to a fresh 20 month low. The US 10yr treasury yields ranged between 1.60% and 1.63% and currently trading at 1.61%.
The Indian 10-year government bond yields held at a six-week low before the central bank buys debt for the second time this month to ease a cash squeeze. The yield was little changed at 8.17%.
Outlook:Uncovered Exporters wait till 54.80 to start covering partially . The 54.10 is still seen as a very crucial support, and rupee is seen holding above it. The breakout below 54.10 levels and rupee sustaining below it for few sessions, would it push further to around 53.50 levels. Importer to use a strict stop loss of 54.55 to cover the unhedged exposures. Overall USD INR bullish target 55.00 again.
(Source: Corporate Communications, India Forex Advisors Pvt. Ltd.)