The benchmark indices ended higher on Friday aided by strong gains in automobiles and metal stocks after the rupee firmed against US dollar. The S&P BSE Sensex ended at 38,390, up 147 points while the broader Nifty50 index settled at 11,589, up 52 points. Among the sectoral indices, the Nifty Auto index settled 2.2 per cent higher led by a rise in the share prices of Hero MotoCorp, Bajaj Auto, Mahindra and Mahindra, and Tata Motors. Nifty Metal index, too, rose 1.9 per cent led by MOIL and Jindal Steel & Power.
OPEN INTEREST AND VOLUME
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Weak rupee could cost India $9.5 billion more to repay foreign debt :
Oil isn’t the only headache for India as the rupee slides. With the currency losing more than 11 per cent to the dollar this year, the country will have to shell out an extra Rs 685 billion ($9.5 billion) when repaying the short-term debt in the coming months, according to numbers arrived at by the State Bank of India. If the rupee averages 73 to a dollar this year and crude oil, India’s biggest import, averages $76 a barrel for the remaining half of 2018, that could see the country’s oil bill rise by Rs 457 billion, Soumya Kanti Ghosh, chief economic adviser at the State Bank, wrote in a note Thursday. India’s short-term debt obligations, which included non-resident deposits as well as overseas commercial borrowings by companies, totalled $217.6 billion in 2017. Assuming 50 per cent has either been paid in the first half of 2018 or was rolled over to next year, the remaining amount to be repaid in rupees would be 7.1 trillion rupees computed using the average exchange rate of 65.1 per dollar in 2017.