Backed by heavy dollar selling by exporters and banks, rupee recovered from early losses on Wednesday and gained 31 paise to close at a one month high of 62.05 per dollar. As per forex traders, domestic currency gained despite US dollar traded strong in global markets after fresh selling was done by exporters and banks in the second half of the session.
Rupee is at the highest level since it ended at Rs 61.62 on November 5. Apart from that experts also said that a sharp decline in selling from foreign institutional investors (FII) and domestic institutional investors (DII) also improved the overall sentiment of the market. While rupee managed to end at its one month high, the Indian stock markets came under pressure after the fear that the Federal Reserve might start tapering its $85 billion a month economic stimulus as economic constitutions in US are showing signs of improvement.
The benchmark Sensex fell by 146.21 points to 20,708.71 as investors were seen booking profits in real estate and FMCG sectors after the recent rally. Similarly, the broader index Nifty also saw pressure from profit booking as it declined by 40.90 points and ended at 6,160.95. Out of the 30 shares comprising Sensex, 19 shares ended the session with losses while on Nifty, 29 stocks in the 50 stocks index declined. Sectorally, real estate and FMCG indices fell by 2.67 per cent and 1.36 per cent respectively. Automobile index also slid by over 1 per cent after the poor performance from the four wheeler manufacturers. The rupee traded strong against most of the major currencies and recovered to Rs 101.58 per pound as against Rs 102.35 per pound on Tuesday.