What will drive share market today: Rupee, Crude oil prices, other key factors to watch out for
By: FE Online | Published: May 24, 2019 9:09:47 AM
The Indian headline indices- Sensex and Nifty are likely to open higher as the Bharatiya Janata Party won a majority of the seats in the Lok Sabha elections 2019 as the markets had expected.
The Indian headline indices- Sensex and Nifty are likely to open higher as the Bharatiya Janata Party won a majority of the seats in the Lok Sabha elections 2019 as the markets had expected. The stock markets had been on a rally since the exit poll results. The SGX Nifty ended 66 points up at 11,745 level from the previous close. Yesterday, while the Sensex settled at 38,811.39 level, up 298.82 points from the previous close, Nifty closed lower by 80.85 points at a level of 11,657.05 from the previous settlement. We take a close look at key things which will drive the market today:
FIIs and DIIs: Foreign institutional investors (FIIs) bought shares worth Rs 1,352 crore on a net basis, while domestic institutional investors (DIIs) sold shares worth Rs 594 crore on Thursday, according to NSE data.
Rupee movement: The Indian rupee on fell on Thursday and ended at 70.01 against the US dollar after Lok Sabha poll counting suggested clear majority for the BJP. Rupee also plunged as the dollar hit its highest level in a month on account of economic and political uncertainties around Europe and Asia. The US-China trade tensions would also put pressure on the Indian currency. Today, the rupee opened at 69.75 per dollar against the previous close of 70.01.
Crude oil prices: The crude oil prices fell nearly 6 per cent on Thursday, extending falls from the previous session amid rising trade tensions between the world’s two largest economies the US and China. The international benchmark for oil Brent plunged to its two month low this week. While the Brent crude was last seen at $68.49 per barrel, 73 cents higher than the previous close, the US WTI was up 58 cents at $58.49 from the previous settlement. As per market experts, the crude oil prices may come under pressure because of the rupee appreciation.