Boosted by a robust sentiment in domestic equity markets on the back of strong macroeconomic data and exit poll results showing a third term for the Prime Minister Narendra Modi-led government, the rupee showcased an upsurge of 38 paise to hit three-month high of 83.04 against the US dollar. This is the report as per the early trade on Monday. The reason can be attributed towards a weak American currency and inflow of foreign capital into domestic equities. As per the forex traders, this has greatly supported the local unit.
The local unit opened at 83.09 and gained further to trade at 83.04 against the greenback in initial deals at the interbank foreign exchange market. WIth this, it registered an increase of 38 paise from its previous closure, wherein, the rupee had breached the 83.00 level on March 18 this year. Furthermore, since April 2023 when it appreciated by 42 paise, the local unit clocked the highest single-day rise. Also, the rupee declined 13 paise to close at 83.42 against the US dollar on Friday.
Alongside, the dollar index was trading 0.06 per cent lower at 104.56. This gauges the greenback's robustness against a basket of six currencies. Furthermore, Brent crude futures, which is said to be the global oil benchmark, fell 0.06 percent to USD 81.06 per barrel. Moreover, the 30-share BSE Sensex was trading 1,912.00 points, or 2.59 per cent higher at 75,873.31 points if we look at the domestic equity market. The broader NSE Nifty soared 597.10 points (2.65 percent) summing up to 23,127.80 points in initial trade.
With the BJP-led NDA expected to win a big majority in the Lok Sabha elections, most of the exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term.
The finance ministry on Saturday had stated that the country's Goods and Services Tax collections grew 10 percent to INR 1.73 lakh crore in May. This was driven by an upsurge in domestic transactions, thereby indicating a sustained economic momentum.
Foreign investors purchased shares worth Rs 1,613.24 crore on a net basis and were net buyers of Indian equities on Friday.
With this, FIIs bought shares worth INR 95,467.56 Crore. Also, the equities worth Rs 93,854.32 crore was sold in one of the record foreign investor activities in the cash segment.
India's economy grew by 8.2 percent in the fiscal year that ended in March as per the data released by the government last Friday. This has cemented India’s position as the fastest-growing major economy at the global front.
