As the US Inflation numbers came soft, all doubts about Fed hiking rates in December were gone. That led to all currencies strengthening against the $. US Yields colled off, Dollar Index came down and US Equities soared.
Indian markets also joined the party. The Rupee made strong gains making new multi week highs. G Sec Yields came off highs and Sensex and Nifty...
Rupee made a new low against the greenback on Fri 10 Nov 2023.
Falling Rupee means higher inflation, higher yields, lower liquidity and hence capping of equities.
This is what i discuss in this update
As the FED did not tinker with rates, Indian equity markets saw a gap up opening. This was probably on the hope tha FII selling will subside and the continuous fall which we were witnessing may pause/ stop.
India's largest festival - Diwali - is on, followed by the Union Budget coming in early 2024 and soon after that the central elections would be...
