India's foreign exchange reserves falls $4.5 billion - Religare

Indian rupee opened down against the greenback and extended its weakness as the session progressed fuelled by the strength in the dollar index.

Domestic equity markets extended gains for the second straight session as benchmark Sensex surged by more than one and a half%. Finally it closed at levels of 19958.47 with a gain of 282.41 points.

India's trade deficit narrowed in June to $12.24 billion from a 7-month high, helped by a slowdown in gold imports, which should ease pressure on the current account balance and the beleaguered rupee. Overall, merchandise imports rose about 0.73% to $36.03 billion and exports fell 4.57% from a year earlier to $23.79 billion, their second straight monthly fall.

India's foreign exchange reserves fell almost $4.5 billion (or Rs 28,500 crore) in the first week of the month to a three-year low of $280 billion on July 5. Indian growth in industrial production (IIP) for the month of May fell to minus-1.6% versus 1.9% for the previous month. Also the IIP for April has been revised to 1.9% versus 2.3% earlier. India's June CPI inflation also drifted higher to 9.87% versus 9.31% on M-o-M basis.

Source : Equity Bulls

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