Daily Digest Market Movers: Indian Rupee recovers amid strong inflow into Indian markets

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  • Indian equity indices reached fresh record highs for the fourth consecutive session before ending on a flat note. The BSE Sensex ended at 77,337.59, dropped 41.90 points or 0.18%, while the Nifty50 closed at 77,337.60, up 36.46 points or 0.05%. 
  • The Indian Rupee may rise beyond 83.20 once inflows from India's inclusion in the JPMorgan emerging market debt index begin later this month, said Sajal Gupta, head of FX and commodities at Nuvama Wealth Management's institutional desk.
  • Fitch Ratings raised India’s growth forecast from 7% in March to 7.2% due to the recovery in consumer spending and increased investment. 
  • "The Rupee is likely to hold in the 83-83.55 band in the next few trading sessions" with the Reserve Bank of India firmly capping sharp declines below 83.55,” said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors.
  •  Traders have priced in a nearly 67% chance of a 25 basis points (bps) for a Fed rate cut in September, up from  61% a day ago, according to the CME FedWatch tool. 
  • The US Initial Jobless Claims for the week ending June 15 are estimated to drop by 235K from the previous week of 242K.


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