Rupee Hits Record Low of 87

February 04, 2025 • Reading Time: 5 minutes

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The markets experienced notable losses, driven by weak global cues and concerns over the Union Budget's low capex allocation. The rupee also reached an all-time low of 87 against the dollar, following US President Donald Trump’s decision to impose 25% tariffs on Canada and Mexico, along with a 10% levy on Chinese imports. In other news, India and the UK are set to resume FTA talks on February 24, while Sharan Hegde’s The 1% Club has secured an RIA license for financial planning services.

As of 03/02/25

  • The Indian stock market saw significant losses on Monday, February 3, as the Sensex dropped over 700 points and the Nifty 50 fell below 23,250 during intraday trade. Weak global cues and concerns over low capex allocation in the Union Budget 2025 triggered a sell-off in capex-related stocks.

  • However, late-session buying helped markets recover and close above key levels. Consumer Durables stocks extended their post-budget rally, with the BSE Consumer Durables index rising 0.74%, driven by expectations that an income tax cut would boost discretionary spending.

  • Meanwhile, reports highlighted US President Donald Trump imposing 25% tariffs on Canada and Mexico, along with a 10% levy on Chinese imports. Experts warn this move could spark a tariff war, potentially disrupting the global economy.

  • This also led to a drop in rupee to 87 for the first time ever.

Nifty 50

(0.52%)

23,361.05

BSE Sensex

(0.41%)

77,186.74

Nifty Bank

(0.60%)

49,210.55

Nifty IT

0.68%

42,314.25

Nifty Vix

1.83%

14.35

10 yr Bond

1.25%

6.778

USD>INR

0.55%

87.009

Source: Moneycontrol

UPL +4.22%

  • UPL shares surged over 5% on February 3, hitting a 52-week high of ₹636.80 after global brokerage Investec upgraded its rating from "sell" to "buy." Investec also raised its price target to ₹700, a sharp increase from the previous ₹450.

G R Infraprojects (4.62%)

  • GR Infra Projects shares fell 4.5% in early trade on February 3 after posting a mixed quarterly performance alongside the Union Budget announcement.

  • Finance Minister Nirmala Sitharaman unveiled a new asset monetization plan for 2025-30, targeting ₹10 lakh crore for infrastructure projects.

  • Additionally, NaBFID will introduce a partial credit guarantee scheme for corporate bonds in the sector, potentially impacting the company's outlook.

  • Fitch Ratings warns India's debt reduction pace poses downside risk. (ET)

  • India and the UK will resume FTA talks on February 24. (ET)

  • Sharan Hegde's The 1% Club secures RIA license for financial planning. (YS)

  • IPO-bound Shadowfax raises ₹34 crore ($3.9Mn) in Series F funding. (EN)

There are no mainboard IPOs this week.

M&A / Investments

  • TVS Holdings acquires 80.74% of Home Credit India for ₹554 crore ($63Mn). (YS)

  • Equirus invests ₹100 crore ($11.4Mn) to merge with Credence Family Office. (YS)

  • ABD acquires Pumori Gin and Woodburns Whiskey for ₹40 crore ($4.6Mn). (ET)

  • Paytm Cloud Technologies to enter Brazil’s fintech market with a ₹8.7 crore ($1Mn) stake in Dinie. (YS)

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