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The Indian Rupee remains steady in Wednesday’s early Asian session.  Finance Minister Nirmala Sitharaman announced raising the capital gains tax, which exerted selling pressure on the INR.  Investors will monitor the preliminary Indian and US PMI data for July, which are due on Wednesday. The Indian Rupee (INR) trades on a flat note on Wednesday despite the modest recovery of the Greenback. The upside of INR might be capped after India’s finance minister Nirmala Sitharaman announced on Tuesday at the Budget Session of Parliament to raise capital gains tax from equity investments and equity derivative trades. However, the possibility that the Reserve Bank of India (RBI) will intervene in the market to prevent the local currency from depreciating and the fall in crude oil prices could help the INR’s losses.  Investors will watch the flash Indian HSBC Purchasing Managers Index (PMI) for July, which is due on Wednesday. On the US docket, the preliminary US S&P Global Purchasing Managers Index (PMI) for July will be released. The Manufacturing PMI is expected to improve slightly to 51.7 in July from 51.6 in June, while the Services PMI is forecast to ease to 54.4 from 55.3 in the same report period. Daily Digest Market Movers: Indian Rupee’s potential upside might be limited amid multiple headwinds India’s benchmark equity indexes, the BSE Sensex and Nifty 50, experienced significant losses on Tuesday, ending slightly lower after falling more than 1% earlier in the day. India’s Finance Minister Nirmala Sitharaman said at the Budget Session of Parliament on Tuesday that the Securities transaction tax on futures and options will be raised to 0.02% and 0.01%, respectively. Sitharaman stated that long-term capital gains on all financial and non-financial assets will be taxed at 12.5%. In addition, the limit of exemption for capital gains will be set…

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Filed under: News - @ July 24, 2024 4:14 am