Mumbai Stock Markets Hit New Highs, Rupee Falls to Record Low
On Monday, Mumbai’s stock markets closed flat after reaching new all-time highs. The BSE Sensex rose by 30.39 points to 81,363.11, and the NSE Nifty gained 7.60 points to 24,842.45. Banking stocks and Larsen & Toubro led the gains. The Sensex peaked at an intraday high of 81,908.43, while the Nifty reached 24,999.75 before settling down.
Among the Nifty companies, 25 advanced and 25 declined. The top gainers included Divi’s Lab, BPCL, Larsen & Toubro, Bajaj Finserv, and M&M. The top losers were Bharti Airtel, Titan, Cipla, ITC, and Tata Consumer Products.
In broader market movements, the BSE MidCap index advanced by 0.4%, and the SmallCap index rose by 0.8%. The Nifty PSU Bank index surged over 3%, reflecting strong investor confidence in public sector banks. The realty sector saw an increase of 1.68%, indicating positive sentiment across various sectors.
The Indian Rupee fell to an all-time low amid heightened demand for dollars from importers. Analysts anticipate a continued negative bias for the rupee due to month-end dollar demand and potential recovery in the US dollar ahead of the Federal Open Market Committee (FOMC) meeting. Domestic market strength and fresh Foreign Institutional Investor (FII) inflows may provide some support.
In the commodities market, WTI crude oil prices declined by 4.6% last week, marking a third consecutive weekly drop due to weak demand from China and geopolitical uncertainties in Gaza. Oil prices edged up slightly to USD 77.4 per barrel but remained near weekly lows. The upcoming OPEC+ meeting on August 1 and recent positive industrial profit data from China are key factors to watch.
Varun Aggarwal, founder and managing director of Profit Idea, said that investors remain cautious ahead of central bank meetings this week, including the Federal Reserve (FOMC), the Bank of England (BoE), and the Bank of Japan (BoJ). These meetings are expected to provide crucial insights into future monetary policies, influencing market directions in the near term.
Doubts Revealed
Mumbai Stock Markets -: These are places where people buy and sell shares of companies. The main ones in Mumbai are the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
Rupee -: The Rupee is the currency used in India, just like the Dollar is used in the USA.
BSE Sensex -: This is an index that shows how the top 30 companies listed on the Bombay Stock Exchange are performing.
NSE Nifty -: This is an index that shows how the top 50 companies listed on the National Stock Exchange are performing.
Larsen & Toubro -: This is a big Indian company that works in construction, engineering, and technology.
WTI crude oil -: This is a type of oil that is used to make petrol and other products. Its price affects many things, including the economy.
Federal Reserve -: This is the central bank of the United States, which helps control the country’s money supply and interest rates.
Bank of England -: This is the central bank of the United Kingdom, which helps control the country’s money supply and interest rates.
Bank of Japan -: This is the central bank of Japan, which helps control the country’s money supply and interest rates.