DOLLAR INDEX VS INDIAN STOCK MARKET

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DMS











MARKETS                                                                             .       

INDICES

COUNTRY

OPEN

HIGH

LOW

CLOSE

Nifty 50

INDIA

14668.35

14743.90

14611.50

14724.80

Bank nifty

INDIA

32900.75

32956.35

32564.00

32827.80

Sensex

INDIA

48877.78

49011.31

48614.11

48949.76

Nifty mid 100

INDIA

14878.60

14947.15

14817.65

14928.60

Nifty small 100

INDIA

8665.95

8689.40

8621.75

8676.10


INDIA VIX (Volatility index) =22.04


COMMODITY AND  CURRENCY INDEX  

CRUDE OIL PRICE / BARREL 

4803

GOLD / 1 GM

47580

SILVER / KG

71615


DOLLAR  $ 1 US = IN Rs.

73.76

EUR INR

88.85

GBP INR

102.39

JPY INR

0.68

AUD INR

57.20



 

IMPORTANT ACTIVITIES (DOLLAR INDEX VS INDIAN STOCK MARKET)

                         .                                   


Today foreign institutional investors have brought 1222.58 Cr investment and Domestic institutional investors have sold for 632.51 Cr which is the half amount of FII figures 

 

Dispute FII were selling huge quantity DII pumping in huge capital which is gathered from mutual funds. India still has 6 -8 % of people were investing in mutual funds opposite to that in countries like USA 60-70 % fund was get invested in mutual funds so there is still a huge market gap that can be get filled in next year and according to me this pumping of funds in the market will defiantly help the market to sustain at their important levels. the current situation is not good in India amid Covid 19 but companies were declaring good results are causing hopes in the Indian financial market.


This surge in Covid cases will defiantly affect on sales numbers of companies so we have to be careful when they will declare Q1 results for 2021. Samir Seksaria was appointed as the new CEO of TCS as V Ramakrishnan retires. M&M will take the remaining stocks in MERU IND.to take 100 % control. 

 

DOLLAR INDEX VS INDIAN STOCK MARKET

 

What is the dollar index?

 

The US dollar index is used to measure the value of the US dollar against a basket of six major worth currencies of the US' significant trading partners. These currencies are Euro, Swiss Franc, Japanese Yen, Canadian dollar, British pound, and Swedish Krona

 

 

How does this system work?

 

These 6 currencies have given weightage out of 100 as follows 

100 

Euro: 57.5

Swiss Franc: 3.4

Japanese Yen: 13.5

Canadian dollar: 9.8

British pound: 11.6

Swedish Krona: 4.2 

                           TOTAL= 100

 

And after every 15 min based upon the Avg. of biding price and offered price this Dollar index gets updated on inter-continental exchanges. 

 



Why Dollar …...?

 

The dollar is 100 % backed by Gold & 100 % convertible into gold. price of the dollar will always get decided by economic conditions, interest rate, and demand 

 


Dollar index VS Market


 

If the dollar index is down meant the dollar price was down and the rupee price has been increased. then FIIs were likely to invest in the Indian market due to rupee appreciation and dollar depreciation opposite this when the dollar index is high (above 90) then rupee gets depreciated and the dollar gets appreciated then FIIs are likely to sell in the Indian market that will create an outflow of cash from the Indian market. 

So as the dollar index is week then markets are likely to become bullish and when the dollar index is Strong then markets are likely to become bearish

 

Import-export traders get affected by this dollar index. As an exporter Pharma, IT sectors are the major sectors of export so when the dollar is strong then they will get benefited from this dollar index. Simultaneously, the IT & Pharma sector will trade in Green. But if you are an importer and when the dollar index is up then companies related to the import of crude Oil HPCL, BPCL, IOC will get worst affected & will trade in Red   

 

People are always preferred Gold & Doller as an investment as both have storage value

When the dollar was a week during the pandemic Gold price was at a high 5600 / gm after that dollar index was up above 90 traded in between 94 -95 then Gold prices were automatically down by 20 %. most of the time people choose the dollar rather than gold because of exchangeability. 

This is how demand and supply will affect on dollar index vs. VS Indian market.




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