Indian Rupee: Holds Steady As Equities Stay Supported

The Indian Rupee eased a little after hitting around five week high but stayed mostly supported. Traders eyed the spurt in inflationary readings and the Indian Rupee currently quotes at 70.90 per US dollar, down 4 paise on the day. Key benchmarks traded near the flat line in mid-morning trade. The Nifty 50 index held firm above the crucial 12,300 mark. At 11:29 IST, the S&P BSE Sensex, was down 32.92 points or 0.08% at 41,826.77. The Nifty 50 index was down 1.45 points or 0.01% at 12,328.10. The broader market traded higher amid positive global cues. The S&P BSE Mid-Cap index was up 0.6% while the S&P BSE Small-Cap index was up 0.69%. The market breadth was strong. On the BSE, 1284 shares rose and 811 shares fell. A total of 135 shares were unchanged. In Nifty 50 index, 34 stocks advanced while 16 stocks declined.

Meanwhile, the all-India general CPI inflation jumped to 7.35% in December 2019, compared with 5.54% in November 2019. The inflation accelerated for the fifth straight month, remaining the highest rate since July 2016. Main upward pressure came from cost of food and beverages (12.16%), namely cereals (4.36%), milk (4.22%), vegetables (60.5%), fruits (4.55%) and pulses (15.44%). The food price index alone jumped to 14.12%, the highest since November 2013.