INDIA MARKET LENS
Companies▲ Positive

Rupee rises to intra-day high, then slips on dollar demand

Bank of India is in focus.

· Economic Times Markets

The Indian rupee gained marginally, closing at 96.73 against the dollar on Friday after interventions. The Reserve Bank of India sold dollars through state-owned banks to influence the currency's value. Reserve Bank governor Sanjay Malhotra stated that the currency is undervalued and needs stabilization. Despite this, there remains an overall strong demand for dollars from companies.

Against that, the stock is +1.6% on the day at ₹134.46, and has returned -3.8% over three months. It sits 24% below its 52-week high. The banks sector has moved -2.5% over the same period, so Bank of India is running 1.3 points behind its peers.

For Bank of India, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.

  • With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
  • The company directly in focus is BANKINDIA.
  • Sector exposure: Banks.
  • The immediate tone of coverage reads positive.