Rupee May be Tested as RBI Unwinds Bearish Dollar Bets

Rupee May be Tested as RBI Unwinds Bearish Dollar Bets Good morning... I’m Bhaskar Dutta in Mumbai, with a quick pulse check as we head into Friday’s open. Indian shares regained their footing on Thursday, backed by fresh foreign inflows and favorable global cues. Still, the renewed flare-up in Middle East tensions this week has sent the Nifty back below the 24,000 mark, curbing investors’ willingness to take on more risk. The benchmark is currently poised to snap a four-week winning streak. But there are positives to consider. Early gains in Asian equities and steady oil prices may offer some support today. Bulls may also take heart from global funds’ net purchase of $1.2 billion of Indian stocks this week, putting inflows on course for their strongest week of the year. Further, the June-quarter earnings season has begun on a positive note: software services giant TCS reported a nearly 5% increase in net income as cost cuts and new deal wins helped offset a broader slowdown in technology spending. Energy and defense shares may be in focus after India and Australia clinched deals in the sectors during Prime Minister Narendra Modi’s visit. Also, Australia agreed to sell uranium to India for power generation in a landmark agreement. In today’s newsletter, we cover: But first, let’s look at a big challenge facing India’s central bank. [Image text:] INR MG AUTO 500 TOTAL- VALUE VOICE UV CUR ADD BATCH /ALUE RESERVE BANK OF INDIA do rg feo 8QP349365 006 DANK OF INDIA BANK OF INDIA <500 349365