Indices gain as inflation drops, rupee hits new low of 70/$


Benchmark indices are trading higher after India’s retail inflation rate eased in July, strengthening views that the Reserve Bank of India (RBI) will keep interest rates on hold at its review in October after raising them for a second straight meeting on August 1.


Consumer Price Index
In July, consumer prices rose 4.17 per cent from a year earlier, compared with a downwardly revised 4.92 per cent in June, the Statistics Ministry said on Monday. 

Rupee

The rupee breached 70 per dollar,  hitting an all-time low on Tuesday after diving by Rs 1.09 to close at an all-time low of Rs 69.92 against the US dollar on Monday, bowing to a global rout in currencies on fears of an economic crisis in Turkey. It was the biggest single-day fall in almost five years.

Global Markets

Asian share markets fought to regain their footing on Tuesday as tremors from the collapse of the Turkish lira ebbed, though sentiment took a fresh knock when Chinese economic data proved softer than expected.

Japan’s Nikkei held onto its early 1.1 per cent gain, while Australian stocks added 0.8 per cent. The Shanghai blue chip index was off 0.6 per cent and weighing on MSCI’s broadest index of Asia-Pacific shares outside Japan which eased 0.2 per cent.

Source: Business Standard

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