The Indian rupee slipped as much as 12 paise against the US dollar on Tuesday as India’s stock market fell into negative territory with the benchmark Sensex tripping nearly 250 points in the morning trades. The rupee opened down 10 paise at 63.69 vs the US dollar at the interbank foreign exchange market on Tuesday. In quick successions, the domestic currency pared off losses partially making a day’s high of 63.65 apiece US dollar. Up until 10:40 am, the rupee made a low of 63.71, down by 12 paise against the US dollar. The Reserve Bank of India fixed a reference rate at 63.5470 against the US dollar on Monday. Earlier yesterday, the rupee ended lower by 3 paise at 63.58 halting its three-day rally after the Economic Survey 2018 was tabled in parliament which projected FY19 GDP growth at 7-7.5%.
“A series of major reforms undertaken over the past year will allow real GDP growth to reach 6.75 percent this fiscal and will rise to 7.0 to 7.5 percent in 2018-19, thereby re-instating India as the world‘s fastest-growing major economy,” a government press release said. The Economic Survey report 2017-18 has estimated the economic growth rate in the fiscal year 2019 between 7-7.5% while saying that the rising crude oil price has become a major concern and is expected to grow by average 12% in the FY19. The Economic Survey report 2017-18 also said that private investment is poised to rebound in the fiscal year 2019 and employment, education and agriculture will remain the focus in the medium term. The survey also said that exports will the biggest source of upside potential for the economy.
Meanwhile, India’s stock markets tripped in the morning session after opening marginally lower with Sensex diving as much as 248.85 points to hit a day’s low of 36,034.4. The S&P BSE Sensex started at 36,277.12, down by 6.13 points and NSE Nifty opened at 11,120.85, down by 9.55 points. Shares of Asian Paints, Wipro, Axis Bank, Kotak Mahindra Bank, Coal India, L&T, Dr Reddy’s, ITC, Power Grid, and Adani Ports lost 1-3%. While on the other hand, shares of SBI and ONGC were the only notable gainers on BSE Sensex, rising 1-2.5%. Earlier yesterday, domestic markets finished at record highs with Sensex and Nifty concluding at fresh peaks after rallying heavily in the intraday trades. The 30-share barometer Sensex zoomed 393.54 points to hit a record high of 36,443.98 before settling up 232.81 points or 0.65% at 36,283.25 while the wider share indicator Nifty added 101.9 points to mark a fresh peak of 11,171.55 before ending up 60.75 points or 0.55% at 11,130.4.