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Market Roundup 

* The Indian rupee is expected to open on a flat note following a lacklustre start at other Asian markets. The forward market suggests USDINR opening around 83.30. Indian bonds rise on report govt. may consider cutting its bond sales this year aided by higher cash balances

* Spot USDINR little changed at 83.31 on Tuesday after Friday’s rally. However, the volumes on the exchange platform remained higher ahead of election result outcomes. Technically, the pair has support at 83.20 and resistance at 83.45.

* The Reserve Bank of India (RBI) recorded its highest net dollar purchase in the last three years, acquiring $41.27 billion in the financial year 2023-24. This marks the largest amount bought since the financial year 2020-21 (FY21). In FY21, the RBI had bought $68.3 billion on a net basis. India’s foreign exchange reserve expanded by $68 billion over FY24. At the end of the financial year, total reserves stood at $646 billion.

Forex:

* The greenback firms for a second day following comments from Fed policymakers. Federal Reserve Governor Christopher Waller said he needs to see “several more” months of good inflation figures to begin interest-rate cuts.

* In Europe the ECB seems pre-committed to a June rate cut despite earlier fears that wage restraint was a precondition while low valuations will likely drive stock gains in the UK.

Equities:

* Asian stocks struggled for solid footing amid a lack of local drivers after the S&P 500 crept to another record ahead of key earnings. Fed speakers suggesting only one or two rate cuts this year dominated a session that saw equities gain and Treasuries edged higher. Shares in Japan fell as the country reported a trade deficit. Stock investors are bracing for a spike in volatility amid geopolitical worries.

Commodities:

* A rally across metals cooled amid fears they had run ahead of fundamentals. Gold, silver and copper consolidated near recent highs, while oil slipped after an industry report showed a jump in stockpiles.

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