The Indian rupee opened slightly higher at 69.45 per dollar on Thursday morning against the previous close 69.66 amid easing crude oil prices and likely win of ruling BJP in Lok Sabha elections 2019. Yesterday, the Indian rupee opened marginally higher at 69.67 per dollar against the previous close 69.71. The market experts expect rupee to remain higher for couple of weeks if the BJP wins as that would mean stability in reform policies. Besides elections, easing crude oil prices and the foreign investment flows will also have an impact on the Indian currency.
“Spot INR is likely to trade in a lower range between resistance at 69.85 & support at 69.30 with a negative bias on account of likely win for the incumbent government as well as sharp decline in crude oil prices yesterday,” Amit Sajeja, Associate Vice President, Motilal Oswal, told Financial Express Online.
“WTI crude oil too is likely to trade negatively below resistance at $62.5. Price could test $60.30 as prices remain under pressure on account of continuous rise in US inventories & trade war concerns hampering demand,” Amit Sajeja further told Financial Express Online. The international benchmark for oil prices, Brent crude futures, were last seen at $70.58 per barrel, 0.58 percent down from their last close, while the US West Texas Intermediate (WTI) crude futures were lower by 0.60 percent, at $61.05 per barrel from their previous settlement.
On Wednesday, the foreign institutional investors or FIIs sold shares worth Rs 965.02 crore, while the domestic institutional investors or DIIs sold shares worth Rs 157.75 crore as on Wednesday, according to NSE data.
The Indian headline indices- Sensex and Nifty are likely to open positive as it is an election result day. The stock markets have been on the rise since the exit poll predicted BJP’s victory with a vast majority in Lok Sabha elections. The SGX Nifty ended 23 points down at 11,757 from the last close.Yesterday, while the Sensex ended up 140.41 points at 39110.21 level, Nifty was higher by 28.80 points at a level of 11737.90.