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Market Roundup

* The Indian rupee opened on a flat note following global cues.

* Spot USDINR declined a paise to close at 83.96 on Monday amid a weaker greenback. Technical set-up remains bullish but the short-term long unwinding can be seen in the coming days. The pair has support at 83.60 and resistance at 84.20.

* India's net direct tax collections grew 22.48% to Rs 6.92 lakh crore till August 11 in the current financial year as compared to Rs 5.65 lakh crore in the corresponding period of FY24.

* India's Index of Industrial Production (IIP) registered a growth of 4.2% in June 2024 – a 5-month low, marking a slight improvement from the 4.0% growth in June 2023. Manufacturing slowed to a 7-month low of 2.6%.

* India’s retail inflation rate decelerated to 3.54% in July (aided by a base effect) as against 5.08 in the preceding month and 7.44% during the same month a year ago.

* Forex:

* The dollar was in limbo on Tuesday as investors waited to see how U.S. economic data affected the chance of outsized rate cuts, while a rally in Japanese stocks helped staunch the bleeding in yen carry trades.

* Traders ease back on bets of a double-cut in September, according to the CME’s FedWatch Tool. The markets are now pricing in less than 50% chance of a 50 bps cut on September 18 by the US Fed, down from 70% last week. However, the rate markets are still pricing in a 100% possibility of at least a 25 bps cut at the Fed September meeting.

* Equities:

* Japan’s major indexes gained more than 2% in Tuesday morning trading as they returned from a holiday.

* Commodities:

* Oil prices edged lower on Tuesday, breaking a five-day streak of gains, as markets refocused on concerns about demand after OPEC on Monday cut its forecast for demand growth in 2024 due to softer expectations in China.

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