Sensex gains 106 points in early trade riding on robust GDP datahttps://indianexpress.com/article/business/economy/rupee-gains-24-paise-against-dollar-in-early-trade-5199758/

Sensex gains 106 points in early trade riding on robust GDP data

Data released by the CSO Thursday showed gross domestic product (GDP) growth in the January-March quarter of 2017-18 was at a seven-quarter high of 7.7 per cent, helping India retain the tag of world's fastest-growing major economy.

Rupee gains 24 paise against dollar in early trade
The rupee appreciated by 24 paise to 67.17 against the US dollar Friday. (Represntational Image)

The BSE Sensex advanced about 106 points in early session Friday, maintaining its positive form for the second day following robust growth data for the March quarter. Investors creating new positions at the beginning of the June futures and options (F&O) series also lifted the key indices.

The 30-share index, which had rallied 416.27 points in the previous session, was trading higher by 105.57 points, or 0.30 per cent, at 35,427.95. Sectoral indices, led by metal, auto, tech, IT, consumer durables and capital goods, were trading in the positive zone with gains of up to 1.13 per cent. The NSE Nifty also went up by 25.40 points, or 0.24 per cent, to 10,761.55.

Official data released after market hours Thursday showed that India’s January-March 2018 GDP growth soared to a seven-quarter high of 7.7 per cent, spurred by robust performance of manufacturing, construction and service sectors, helping it retain the tag of the fastest growing major economy. The rupee appreciating against the dollar also fuelled the uptrend, brokers said. Auto stocks were in demand on expectations of encouraging sales data for the May month, to be released Friday.

Big gainers included ICICI Bank, Bajaj Auto, Maruti Suzuki, Sun Pharma, L&T, Tata Motors, Hero MotoCorp, Wipro, HDFC Ltd, TCS, Infosys, HUL and RIL, climbing up to 3.64 per cent.

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However, other Asian markets were mixed on fresh trade war fears after the Trump administration’s tariffs on imports from key allies. Hong Kong’s Hang Seng was up 0.26 per cent and Japan’s Nikkei rose 0.24 per cent in their early deals while Shanghai Composite index fell 0.33 per cent. The US Dow Jones Industrial Average ended 1.02 per cent lower in Thursday’s trade.

Rupee gains 24 paise against dollar in early trade

Rising for the third day, the rupee appreciated by 24 paise to 67.17 against the US dollar Friday on continued selling of the American currency by banks and exporters amid robust macroeconomic data. Data released by the CSO Thursday showed gross domestic product (GDP) growth in the January-March quarter of 2017-18 was at a seven-quarter high of 7.7 per cent, helping India retain the tag of world’s fastest-growing major economy.

Forex dealers said besides sustained selling of the American currency by exporters as well as banks, a higher opening in the domestic equity market supported the rupee. However, the dollar’s strength against other currencies overseas capped the gains.

On Thursday, the local currency had edged up by 2 paise to end at 67.41 against the American currency on stray dollar selling by banks and exporters. Meanwhile, the benchmark BSE Sensex was up 55.60 points, or 0.15 per cent, at 35,377.98 in early trade.