Weaker rupee likely to spook Nifty on Friday

Market


A day after the rupee closed at its lowest level of 80.87 to the USD, Indian equities are likely to open almost 100 points lower at the opening on Friday.

The SGX Nifty, which traded at 17,536.5 as of writing, reflected a 93.5 point gap down by the benchmark Nifty when it opens at 9:15 am.

FIIs sold shares worth a provisional 2,510 crore Thursday, causing the Nifty to close half a per cent lower at 17,630.

So far this fiscal year they have sold shares worth 40,281 crore ($5.4bn) after selling shares worth 1.4 lakh crore ($18.46bn) in FY22.

A weaker rupee reduces their gains in USD when they repatriate money back home as they get fewer dollars at the time of exchanging currency.

The rupee weakened after US Fed‘s rate committee hiked the Fed Funds Rate by 75 bps causing the dollar index to rise to its highest at 111.66 in 20 years against a basket of six currencies.

 

 

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