Dear readers, apologies yet again for the delay in posting January’s economic review but due to certain unavoidable circumstances the review could not be posted on time. Hope this review is useful and informative.

Equity
The BSE stock index started the year on a positive note, rising for the first 2 days to reach 17686. The markets remained strong for all most the entire month touching a high of 17790 on Jan 6. During the later part of the month on account of selling pressure markets reached a low of 15790 at the end.

Government Securities
Yields on 6.35% 2020 bond started the month with a bullish note and touched a high of 7.72%, but later as date for quarterly review of monetary policy approached, yields started falling and touched a low of 7.54% towards the end of month. Yields closed the month at 7.58%, almost at the same level as that of last month’s close of 7.59%.

USDINR
Beginning of the month saw INR appreciating against the dollar for 6 straight sessions from 46.61 to 45.31. It however depreciated for almost the entire month after that to finally close at Rs. 46.12 per dollar.

Gold Prices
International gold prices dropped during the month to a low of $1,083/Oz. Gold started off strong at $1,118, reaching a high of $1,163 on Jan 11. After this gold witnessed a complete selloff and closed at the month’s low.

Crude Oil Prices
International Crude prices also saw a selloff in the month, after rising initially for a few days to reach the months high of $83.18/barrel. The prices fell for the remaining part of the month, breaking the psychological $80/barrel barrier on Jan 14. Crude closed on the months low of $72.89.

Author: Abhijit Ahir, Economic Analyst, MBA Finance (SIIB)

Popularity: 14% [?]

No related posts.