The Indian rupee opened on a cautious note and fell 7 paise to 70.63 against the US dollar in early trade on Monday tracking weak opening in domestic equities and foreign fund outflows.
Forex traders said increasing demand for the US dollar vis-a-vis other currencies overseas and rising crude oil prices weighed on the domestic unit.
At the interbank foreign exchange, the rupee opened on a strong note at 70.37 then lost momentum and fell to 70.63 against the US dollar, showing a decline of 7 paise over its previous closing.
The Indian rupee on Friday had closed at 70.56 against the US dollar.
Domestic bourses opened on a negative note on Monday with benchmark indices Sensex trading 255.85 points down at 38,566.72 and Nifty lower by 83.20 points at 11,429.20.
Foreign institutional investors (FIIs) offloaded shares worth Rs 213.60 crore on Friday, according to provisional exchange data.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.03 per cent to 99.13.
Forex traders said rising crude oil prices weighed on the rupee. Crude oil benchmark, Brent Futures, rose 0.05 per cent to USD 61.94 per barrel.
Meanwhile, the 10-year government bond yield was at 6.70 per cent in morning trade.
Meanwhile, on the global front, China will send its top trade negotiator to US for trade talks. China’s top trade negotiator will lead an upcoming trade talks with the United States, a senior Chinese official said Sunday.
Sensex tumbles over 310 pts; Nifty slips below 11,500
The BSE benchmark Sensex plunged in opening trade on Monday due to sell-offs mainly in financial, metal and auto stocks amid subdued global cues.
Likewise, the NSE gauge Nifty too dropped to slip below the psychological 11,500-level.
Yes Bank, IndusInd Bank, Tata Steel, Sun Pharma, Vedanta and Tata Motors were among the top losers on the Sensex chart.
On the other hand, IT stocks — HCL Tech, TCS, Infosys — were the major gainers.
Opening on a flat note, the Sensex was gripped by volatility as the trade progressed and dived 310.80 points or 0.80 points to trade at 38,511.77 in early deals.
While, the Nifty was down 84.05 points or 0.74 points to 11,427.55.
Analysts attributed the sluggish start for the Indian markets to subdued global cues.
Asia stocks too were trading mixed as investors continued to watch developments on the US-China trade front.
Reports suggested that the White House was considering curbs on US investments in China.
The Indian rupee opened marginally higher against the US dollar in early deals on Monday.
Last week, the Indian government continued with its measures to prop up consumer demand across sectors and bring the economy on track.
series of consultations the finance minister has been holding with various stakeholders to brainstorm on measures needed to accelerate economic growth, which dipped to a six-year low of 5 per cent in the first quarter of 2019-20.
Finance Minister Nirmala Sitharaman on Friday said various ministries have cleared Rs 40,000 crore out of Rs 60,000 crore due mainly to MSMEs for supply of goods and services, and the remaining amount not locked in litigation too will be paid by the first week of next month.
The government has also set October 15 as the deadline for central PSUs to clear overdue payments to vendors and exhorted them to front-load capital expenditure as it looks to lift economic growth from six-year low.
On Friday, foreign portfolio investors sold shares worth a net of Rs 213.60 crore, exchange data showed.
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