Sensex Nifty today: The rupee strengthened by 6 paise to 83.26 against the US dollar in early trade today on easing global crude oil prices and rising appetite for riskier assets. However, a sell-off in the domestic equity markets and a strong American currency against major rivals overseas restricted the rupee’s rise, traders said.
At the interbank foreign exchange, the domestic unit opened at 83.22 against the dollar and then slipped to 83.26, registering a gain of 6 paise over its previous close. In the initial trade, the domestic unit was moving in a tight range of 83.27-83.22 against the American currency.
In the previous session on Monday, the rupee had settled at an all-time low of 83.32 against the dollar. Currency markets were closed on Tuesday (September 19) on account of Ganesh Chaturthi. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was almost unchanged at 104.83.
Brent crude futures, the global oil benchmark, fell 1 per cent to USD 93.40 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 307.27 points or 0.45 per cent lower at 67,289.57. The broader NSE Nifty declined 100.75 points or 0.5 per cent to 20,032.55.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they sold shares worth Rs 1,236.51 crore, according to exchange data.
Indian stocks extend losses, await US Fed policy outcome for fresh cues:
Indian stock indices extended losses from the previous session and edged sharply lower today (September 20), tracking weak overnight US markets coupled with rising global crude oil prices amid the strengthening of the US dollar.
Sensex was at 67,213.98 points, down 382.87 points or 0.57 per cent, and Nifty was at 20,024.60 points, down 108.70 points or 0.54 per cent at the opening bell. India stock exchanges were closed yesterday (September 19) for trading on the occasion of Ganesh Chaturthi.
On Monday (September 18), Indian stock indices closed in the red, with the benchmarks largely witnessing profit booking. Investors may have taken some money off the table after the indices hit their fresh highs last week.
“There are too many challenges for the market in the near term. Brent crude at $94, the dollar index above 105, the 2-year US bond yield at 5.09 per cent and the INR at record lows against the dollar are strong headwinds,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The straining of relations between India and Canada is unlikely to have any lasting impact on the market,” he said.
Going ahead into this week, investors are likely to tread carefully as the US Federal Reserve’s meeting scheduled Tuesday-Wednesday, its outcome due likely this midnight, will be closely monitored. The US central bank in its July meeting raised its benchmark interest rate by 25 basis points, the highest in the past 22 years at 5.25-5.5 per cent, in its fight against soaring inflation and bringing it back to the 2 per cent target.
(With agencies inputs)
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