Despite a weak performance from the Indian equity markets, rupee continued to surge on sustained dollar selling by exporters and banks. Domestic currency gained by 29 paise during Tuesday’s session and finally closed at seven-month high of Rs60.48 per dollar.
Sensex, on the other, ended the session flat with a marginal loss of 0.27 points but did manage to again touch a new intra-day lifetime high of 22,076.96.
In highly volatile trade in which banks, power, capital goods, consumer durables and realty stocks rose on capital inflows but refinery counters came under selling pressure, said market experts.
Meanwhile, rupee started the session on a stronger note and rose to a high of Rs60.44 per dollar backed by heavy capital inflows and dollar selling done by exporters. Finally the currency closed at its seven- month high of Rs60.48 per dollar with gains of 29 paise. The last time the rupee closed at this level was on August 1, 2013 when it ended at 60.43.
In three straight sessions of gains, rupee has spurted by 86 paise. Even a rise in dollar index could not prevent the rise in domestic currency. The dollar index was trading up by 0.12 per cent against a basket of six major global rivals.
“Persistent dollar inflows into equity and debt markets are supporting the rupee. Monthly dollar demand is likely to put pressure on the rupee but the positive sentiment on account of relentless capital flows is seen restricting the losses,” said Abhishek Goenka, Founder & CEO of India Forex Advisors.
Not just against dollar, but rupee surged against all top global currencies. Rupee ended with gains at Rs99.77 per pound from last close of Rs100.30 per pound. It also strengthened to Rs83.51 per euro from Rs83.70 per euro and to Rs59.14 per 100 Japanese yen from 59.33.
On Sensex, overall trend declined as shares prices of market leader and one of the biggest contributor to the index, Reliance Industries limited (RIl), declined by 2.87 per cent. RIl’s stock fell after the Election Commission asked the Oil Ministry to defer a planned hike in gas prices that was to come into effect from April 1. The broader index, Nifty inched up by 6.25 points to set a fresh all-time high of 6,589.75 points.
Of 30 Sensex stocks, 15 shares declined, 14 advanced and Cipla remained flat. Among the top losers, RIl fell by 2.87 per cent and was followed by wipro which declined by 2.58 per cent. BHEl was the biggest gainer and rose by 4.41 per cent. Other gained include, Hero MotoCorp, Hindustan Unilever and larsen & Turbo which rose by 3.2 per cent, 1.73 per cent and 1.47 per cent respectively.