Indian markets traded lower in the latest session, with benchmark indices weighed down by weakness in information technology stocks following softer-than-expected U.S. retail sales and labour market data.
The BSE Sensex declined 0.17% to 84,134, while the broader Nifty 50 edged lower to 25,916. The weakness in IT stocks offset gains seen after earnings in Eicher Motors and Apollo Hospitals.
In the currency market, the Indian rupee weakened against the U.S. dollar. The USD/INR pair rose as the rupee fell 0.12% to 90.69, amid increased dollar demand from importers.
In the bond market, the benchmark 10-year government security (IN064835G=CC) was quoted at 98.2175 rupees, with the yield rising slightly to 6.7325%. Traders remained cautious ahead of the January inflation data, which is expected to provide further clarity on the central bank’s interest rate trajectory.
Overnight index swap rates also firmed. The one-year OIS rate (INR1YMIBROIS=CC) increased 1 basis point to 5.5250%, while the five-year swap rate (INR5YMIBROIS=CC) rose 1.25 basis points to 6.1450%.
In money markets, India’s overnight call money rate (INROND=) stood at 4.50%, while the overnight TREPS rate (INTREPTOT=TCCL) was at 4.75%.
Market participants are closely watching upcoming macroeconomic data for further cues on policy direction and liquidity conditions.
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