Sensex trading higher today, in line with other Asian indices

Sensex trading higher today, in line with other Asian indices

Jahnavi Prabhakar,

Economist,

Bank of Baroda 

FinTech BizNews Service   

Mumbai, November 21, 2023: Moving in line with market expectations, PBoC has kept its benchmark rates unchanged with 1-year LPR pegged at 3.45% (usually for new and outstanding loans) and 5-year at 4.2% (for mortgage pricing). Separately, Thailand’s GDP expanded at a much slower pace in Q3CY23 by 1.5% (1.8% in Q2) on account of slowdown in exports. Investors will closely monitor the OPEC+ meet scheduled this week with the expectation of output cuts proposed to support crude prices. Commentary by Fed officials will also be seen closely given the recent cooler than expected inflation print in US and raised hopes of a pause in the rate hike cycle by Fed.

• Global indices ended mixed. US indices closed higher supported by strong gains in technology, consumer services and telecom. Latest developments in the AI industry was also tracked closely by investors. Nikkei touched its highest level since Jul-1990 during the day and closed in green, supported by earnings season. Sensex ended in red led by losses in auto and capital good stocks. However, it is trading higher today, in line with other Asian indices.
• Except INR, other global currencies ended higher. DXY fell by 0.5% to more than 2-month low, as weaker than expected US conference board economic index data reaffirms the view that economy is slowing, and Fed has reached the end of its rate hike cycle. JPY and CNY gained the most. INR fell as oil prices rose. However, it is trading higher today, in line with other Asian currencies.

  Barring US and Japan (lower), other global yields closed higher. US 10Y yield declined by 2bps, following strong demand in the Fed auction of treasury securities. Investors also await minutes of last Fed meeting, for more cues on trajectory of rate cuts. India’s 10Y yield was up by 4bps to 7.26%, as oil prices inched up again. However, it is trading lower today at 7.24%.

(The views expressed in this research note are personal views of the author(s) and do not necessarily reflect the views of Bank of Baroda. Nothing contained in this publication shall constitute or be deemed to constitute an offer to sell/ purchase or as an invitation or solicitation to do so for any securities of any entity.)