- Indian rupee vs US dollar: Don't get carried away by CAD dataBSE Sensex index hits record high, NSE Nifty not far behind as blue chips soarIndian rupee at 3-mth high, up 64 p against US dollar as CAD drops, stocks soarBSE Sensex, NSE Nifty close at life-time highs, Hindalco, ICICI Bank shares soar
Thursday, the biggest single-day purchase since December 19.
The pre-election euphoria apart, there’s also some hope the economy may be bottoming out. A report by HSBC India shows revenue growth of the MSCI India Index companies inched up for the second consecutive quarter in December 2013, after touching 4% in March 2013, the lowest level since 2010. The HSBC Purchasing Managers’ Index (PMI) for the manufacturing sector had touched a one-year high of 52.5 in February, indicating the worst may have been over for India Inc.
“There are some positive events and expectations of better growth in India will prevail over the negative developments globally,” Raamdeo Agrawal, joint MD and co-founder, Motilal Oswal Financial Services, told FE.
Brokerage BNP Paribas observed that just a few months ago, the Indian economy was plagued by headwinds of high inflation, high CAD and political uncertainty. “Till September 2013, the INR (rupee) was the worst performing currency among the ‘fragile five’. However, the actions of policymakers since then have helped the currency regain investor credibility, and tight curbs on gold imports coupled with improved merchandise and service exports sharply reduced the current account deficit,” the report said.
The BSE Sensex is now among the best performing market this year; the Sensex had returned 3% in US dollar terms, beating those from China's Shanghai Composite (-3.7%), the Taiwan Taiex (-0.3%), South Korea's Kospi (-2.9%) and Brazil's Bovespa (-7.9%). Foreign brokerage Deutsche Bank has set a Sensex target of 24,000 for December 2014, at which Sensex will trade at 15.8 times FY15 EPS, in line with average of past five years.
Global cues remained positive on Thursday despite the undercurrent of tension between Russia and Ukraine. While Asian markets were up anywhere between 0.22% and 1.59%, the major European indices, the FTSE 100, DAX and the CAC, were also trading up anywhere between 0.24% and 0.61% at about 5.00 pm IST.