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Rupee rises 7 paise to 71.21 against US dollar in early trade

The rupee appreciated by 7 paise to 71.21 against the US dollar in opening trade on Wednesday, driven by positive opening in domestic equities.

Forex traders said positive opening in domestic equities supported the local unit, while rising crude prices, foreign fund outflows and strengthening of the American currency weighed on rupee and restricted its upmove.

Moreover, rupee continued to consolidate in a narrow range ahead of inflation and industrial production figures scheduled to be released later in the day, they added.

The rupee opened strong at 71.24 at the interbank forex market then gained further ground to touch 71.21 per dollar, displaying gains of 7 paise against the greenback.

On Tuesday, the rupee had settled at 71.28 against the US dollar.

The benchmark BSE Sensex was trading with gains of 370.21 points, or 0.90 per cent to quote at 41,586.35 while the NSE Nifty was trading at 12,205.30, up 97.40 points, or 0.08 per cent.

Foreign institutional investors sold equities worth Rs 209.39 crore on a net basis on Tuesday, according to provisional exchange data.

Meanwhile, brent crude, the global benchmark, was trading at USD 54.97 per barrel higher by 1.78 per cent.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.04 per cent to 98.75.

The 10-year government bond yield was at 6.48 per cent in morning trade. PTI

Sensex rallies over 300 points ahead of IIP, inflation data releases

Market benchmark Sensex rallied over 300 points in opening session on Wednesday driven by gains in HDFC twins, RIL, ICICI Bank and HUL ahead of the release of inflation and factory output data.

The 30-share BSE index was trading 331.04 points or 0.80 per cent higher at 41,547.18, and the broader NSE advanced 93.50 points, or 0.77 per cent, to 12,201.40.

In the previous session, Sensex settled 236.52 points, or 0.58 per cent, higher at 41,216.14 and Nifty rose 76.40 points, or 0.64 per cent, to 12,107.90.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 209.39 crore, while domestic institutional investors bought shares worth Rs 344.63 crore on Tuesday, data available with stock exchanges showed.

HUL was the top gainer in the Sensex pack, rising up to 3 per cent, followed by Tata Steel, NTPC, HDFC, Nestle India, PowerGrid and Axis Bank.

On the other hand, IndusInd Bank was the sole laggard in morning session.

According to analysts, domestic investors are likely to stay focused on the last batch of Q3 numbers, factory output and CPI inflation for the month of January. As per the consensus, inflation is expected to remain elevated confirming the recent action by the central bank.

Market also took positive cues from global markets that remained on firm footing despite concerns over coronavirus (COVID-19), traders said.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a positive note.

Stock exchanges on Wall Street closed with gains on Tuesday.

Meanwhile, the rupee appreciated 5 paise against the US dollar to 71.21 in morning session.

Global crude benchmark Brent rallied 1.72 per cent to USD 54.94 per barrel. PTI

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