Markets are affected by falling crude oil prices

Financial and capital markets ended positively on Monday after chaos last week. The rupee bounced to below 78, bitcoin rose above $ 20,000, Sensex broke a 6-day loss and government securities (G-Secs) rose on Monday, with the price of the 10-year benchmark jumped 71 paces and yields fell about 11 basis points amid the thawing of US Treasury profitability and falling world crude oil prices.

Accordingly, the profitability of G-Secs fell for a maximum of almost two months. The yield of the 10-year benchmark fell by about 11 basis points to close at 7.4365% compared to the previous close of 7.5460%.

The price of this security ended at Rs 93.93 against the previous close of Rs 93.22. Bond yields and prices are inversely proportional and moving in opposite directions.

Ajay Manglunia, MD and head of the Investment Grade Group, JM Financial, said the decline in G-Secs yields was in line with declining US government bond yields and the cooling of global crude oil prices.

In addition, the mood was boosted by the fact that the auction of G-Secs last Friday passed without devolution of primary dealers.

He noted that the profitability of the 10-year-old G-Sec could range from 7.40 to 7.60%.

During the last two trading sessions, the price of the 10-year stock rose 1.17 rupees, with its yield falling by about 18 basis points.

The rupee, meanwhile, closed below $ 78 on Monday as world crude oil prices fell due to the possibility of a drop in demand amid fears of a global slowdown.

The rupee closed at 77.9775 per dollar against the previous close of 78.07. During the day, the Indian unit tested a peak of 77.87 and the lowest of 78.0325.

In the stock market, benchmarks recovered from early losses to close higher. However, the wider market continued to face pressure, with small companies feeling the heat.

BSE Sensex closed at 51,597.84 points, up 237.42 points or 0.46%. He recorded a peak during the day of 51,714.61 and the lowest of 51,062.93. Nifty 50 closed near the daily high of 15,382.50 from 15,350.15, up 56.65 points or 0.37 percent. He recorded a bottom during the day of 15,191.10.

“Positive trends in global markets have inspired the internal market to trade positively, with large capitalizations earning the most, while medium and small capitals continue to trade at a discount. Predominant inflationary pressures and concerns about policy tightening have limited the rise, “said Vinod Nair, head of research at Geojit Financial Services.

Posted on

June 20, 2022

Related Posts

Leave a Reply

Your email address will not be published.