Rupee breached the 65-mark against the dollar as China let the yuan slide for the third day in a row. China tried to allay fears as the central bank says yuan is now closer to market levels.
It was a rollercoaster ride on Dalal Street as the market ended with marginal gains. Early morning rally fuelled by positive macro cues (CPI and IIP) could not keep the market happy for long. The Sensex was up 37.27 points at 27549.53 and the Nifty ended up 6.40 points at 8355.85. About 1017 shares have advanced, 1833 shares declined, and 132 shares were unchanged.
Metals stocks fell drastically with Vedanta, Tata Steel and Hindalco as major laggards.
M&M, Cipla, Lupin, Maruti and Axis Bank were top gainers in the Sensex. Midcaps also saw profit-booking. Arvind Sanger of Geosphere Capital Management believes it to be a bottom-
up market and is cautiously optimistic on India. This coupled with other macro headwinds and the policy paralysis, makes Sanger cautious on the Indian markets. The rupee breached the 65-mark against the dollar hitting its lowest level since September, 2013. The finance secretary has said the government and all institutions must act on the yuan depreciation.
India's top bankers have also expressed shock at the yuan devaluation. China has tried to quell fears of an all-out currency war after letting the yuan slide for the third straight day.
China has set its parity rate at 6.40 yuan for one dollar. The move is aimed at boosting the country's exports and arrest the economic slowdown. China's central bank is attempting to ally fears. The bank said yuan is closer to market levels and there's no basis to rumours that there will persistent and substantial devaluation. There were reports suggesting that the yuan could drop as much as 10 percent.
Meanwhile, a turbulent and largely unproductive monsoon session ended this afternoon without legislation including the goods and services tax proposal being cleared. Both houses of Parliament have been adjourned sine die. The government wants to clear the GST bill before the winter session so that it can meet the April 2016 rollout deadline.
It was a rollercoaster ride on Dalal Street as the market ended with marginal gains. Early morning rally fuelled by positive macro cues (CPI and IIP) could not keep the market happy for long. The Sensex was up 37.27 points at 27549.53 and the Nifty ended up 6.40 points at 8355.85. About 1017 shares have advanced, 1833 shares declined, and 132 shares were unchanged.
Metals stocks fell drastically with Vedanta, Tata Steel and Hindalco as major laggards.
M&M, Cipla, Lupin, Maruti and Axis Bank were top gainers in the Sensex. Midcaps also saw profit-booking. Arvind Sanger of Geosphere Capital Management believes it to be a bottom-
up market and is cautiously optimistic on India. This coupled with other macro headwinds and the policy paralysis, makes Sanger cautious on the Indian markets. The rupee breached the 65-mark against the dollar hitting its lowest level since September, 2013. The finance secretary has said the government and all institutions must act on the yuan depreciation.
India's top bankers have also expressed shock at the yuan devaluation. China has tried to quell fears of an all-out currency war after letting the yuan slide for the third straight day.
China has set its parity rate at 6.40 yuan for one dollar. The move is aimed at boosting the country's exports and arrest the economic slowdown. China's central bank is attempting to ally fears. The bank said yuan is closer to market levels and there's no basis to rumours that there will persistent and substantial devaluation. There were reports suggesting that the yuan could drop as much as 10 percent.
Meanwhile, a turbulent and largely unproductive monsoon session ended this afternoon without legislation including the goods and services tax proposal being cleared. Both houses of Parliament have been adjourned sine die. The government wants to clear the GST bill before the winter session so that it can meet the April 2016 rollout deadline.
