Sensex rallies over 300 points, rupee rises 6 paise to 68.92 against USDhttps://indianexpress.com/article/business/rupee-rises-6-paise-to-68-92-against-usd-in-early-trade-sensex-rallies-over-300-pts-nifty-reclaims-11300-5850374/

Sensex rallies over 300 points, rupee rises 6 paise to 68.92 against USD

Forex traders said heavy buying in domestic equity market supported the domestic unit, however, foreign fund outflows and rising crude oil prices weighed on local currency.

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At the interbank foreign exchange, the rupee opened at 68.99, then gained momentum and touched a high of 68.92, registering a rise of 6 paise over its previous close. 

Domestic equity benchmark BSE Sensex rallied over 300 points in early trade on Thursday tracking gains in HDFC twins and Infosys ahead of July derivatives expiry, amid positive global cues.

The 30-share index was trading 309.16 points or 0.82 per cent higher at 38,156.81 at 0945 hours; the broader Nifty also surged 81.15 points or 0.72 per cent to 11,352.45.

In the previous session, the 30-share index tumbled 135.09 points or 0.36 per cent to close at an over two-month low of 37,847.65. Similarly, the Nifty dropped 59.75 points or 0.53 per cent to 11,271.30.

In early trade, IndusInd Bank, HDFC Bank, Sun Pharma, Vedanta, HDFC, Axis Bank, Infosys and Maruti led the gains on Sensex, rising up to 2.35 per cent. On the other hand, Tata Motors, Kotak Bank, Yes Bank, Asian Paints, ONGC and M&M fell up to 2.28 per cent. According to traders, besides tracking firm global cues, benchmark indices rallied on gains in index heavyweights HDFC and HDFC Bank stocks.

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Investors are also upbeat ahead of the expiry of July futures and derivatives contracts, they said.

On a net basis, foreign institutional investors sold equities worth Rs 1,393.71 crore, while domestic institutional investors purchased shares to the tune of Rs 2,140.26 crore, provisional data available with stock exchanges showed on Wednesday.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading in the green in their respective early sessions.

Equities on Wall Street too ended on a positive note on Wednesday.

Meanwhile, the Indian rupee appreciated marginally to 68.96 against the US dollar (intra-day).

The global oil benchmark Brent crude futures were trading 0.17 per cent higher at 63.29 per barrel.

The rupee appreciated by 6 paise to 68.92 against the US dollar in early trade on Thursday amid positive opening in domestic equity market.

Forex traders said heavy buying in domestic equity market supported the domestic unit, however, foreign fund outflows and rising crude oil prices weighed on local currency.

Besides, the rupee is expected to trade in a narrow range ahead of the much crucial European Central Bank (ECB) policy statement to be released later on Thursday.

At the interbank foreign exchange, the rupee opened at 68.99, then gained momentum and touched a high of 68.92, registering a rise of 6 paise over its previous close. The domestic unit was trading at 68.96 against the dollar at 0949 hrs.

The domestic currency had settled at 68.98 against the US dollar on Wednesday.

Other major global cues that are going to dictate terms to the rupee include the US second-quarter preliminary GDP print on Friday and the Federal Open Market Committee (FOMC) meeting on July 31, traders said.

Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,393.71 crore Wednesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.19 per cent to trade at USD 63.30 per barrel.

Domestic bourses opened on a bullish note Thursday with benchmark indices Sensex trading 320.35 points higher at 38,168.00 and Nifty up 83.60 points at 11,354.90.

Meanwhile, market participants are betting on the US and China trade talks next week.

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The US and Chinese officials are restarting negotiations in Shanghai on Tuesday and on Wednesday, in an effort to resolve the year-long trade dispute The dialogue.