The Indian rupee opened slightly higher at 69.67 per dollar on Wednesday morning against the previous close 69.71 ahead of Lok Sabha election results to be announced tomorrow. Yesterday, the Indian currency opened flat at 69.74, while it opened higher on Monday after the exit polls predicted victory for the ruling Bharatiya Janata Party in the Lok Sabha elections 2019. The results will be declared on Thursday. The market experts expect the rupee to remain higher for a couple of weeks if the BJP wins as that would mean stability in government reforms. Besides elections, trade worries between the US and China, geopolitical tensions in the Middle East and foreign investment flows will also drive the rupee.
“Spot INR is likely to trade in a relatively higher range between 69.60-69.95 as further profit booking might be seen in the equity market ahead of election results tomorrow,” Amit Sajeja, Associate Vice President, Motilal Oswal, told Financial Express Online.
The crude oil is likely to trade in the range of 4351-4493 per barrel on Wednesday. The crude oil prices rose on increasing geopolitical worries between US and Iran amid expectations that producer club OPEC will continue to withhold supply this year, according to Kedia Advisory. The US President Donald Trump threatened Iran with “great force” if it attacked US interests in the Middle East. The international benchmark for oil prices, Brent crude futures, was last seen at $71.76 per barrel, 0.58 per cent down from their last close, while the US West Texas Intermediate (WTI) crude futures were lower by 0.81 per cent, at $62.62 per barrel from their previous settlement.
On Tuesday, while the foreign institutional investors or FIIs bought shares worth Rs 1,185 crore on a net basis, the domestic institutional investors (DIIs) sold shares worth Rs 1,090 crore, according to NSE data.
Today, the headline indices- Sensex and Nifty opened flat ahead of vote counting on Thursday. Yesterday, the Sensex and Nifty scaled fresh heights in the last ten years. Currently, the Sensex is up 161.80 points at 39,131.60 level from the previous close, the Nifty is at 11,746.80 level, up 37.70 points from the last settlement.