Sensex, Nifty Hit A Record High On Strong Global Cues; Rupee Against Dollar Rises
- 3m0•
- 17 Apr 2023
Positive cues from Asian bourses and Wall Street lifted the trading sentiments on Wednesday, thus pushing the Indian indices to record highs.
The BSE 30-share Sensex touched an all-time peak of 38,989.65 points on the back of strong buying by domestic investors ahead of the expiry of August futures and options (F&O). Shares of Index heavyweight RIL were trading at an all-time high of Rs 1,304.30.
The other gainers that backed the rally were NTPC, Coal India, Vedanta, Sun Pharma, Asian Paints, Tata Steel, PowerGrid, ONGC, IndusInd Bank, Kotak Bank, Bharti Airtel and TCS, gaining up to 3.37 per cent.
The broader-based NSE Nifty 50, which had opened at 11,744.95, similarly scaled a record high of 11,751.20 points during the day.
According to provisional data as on Tuesday, domestic institutional investors and foreign institutional investors had bought shares worth around Rs 1,118 crore, and Rs 253 crore, respectively.
Hong Kong's Hang Seng was up 0.27 per cent, while Japan's Nikkei rose 0.39 per cent and Shanghai Composite Index gained 0.01 per cent in early trade. The US Dow Jones Industrial Average ended 1.01 per cent higher than its previous closing.
Rupee Against The Dollar
Showing signs of recovery, the rupee firmed up by 10 paise to 70.06 against the US dollar in early trade on Wednesday on the back of selling of the American currency by exporters and banks. The rupee had recovered somewhat on Tuesday from an all-time closing low of 70.16 registered in the previous session record to gain 6 paise and end at 70.10.
Even the dollar’s weakness against other currencies has added to rupee’s strength, feel dealers.
“The rupee staged intermittent recovery, especially towards end-May, due to softening of crude oil prices on prospects of higher production and better than expected Q4 growth but the gains could not be sustained in June due to significant hardening of crude oil prices, increase in CAD for Q4 of 2017-18, rate hike by the US Fed and intensification of trade related tensions between the US and China,” said a Moody’s Investors Services report.
Our Take On Rupee
For the past five months we have changed outlook on rupee, and turned a bear citing a pre-election year could keep carry traders away from the market. That remains the larger theme. Add to the oil, Fed and Trump, the cocktail gets quite dangerous.
But over the near term, much is depended on the Chinese Yuan; if it reversed direction and began appreciating against the US dollar, the rupee too would appreciate against the US currency.
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