The Sensex struck a positive note today in the beginning on continued foreign inflows ahead of the expected hike in US interest rates.
The Sensex struck a positive note today in the beginning on continued foreign inflows ahead of the expected hike in US interest rates. However, caution prevailed after retail inflation rose to 4-month high of 3.65 per cent in February and that of wholesale prices shot up to a 39-month high of 6.55 per cent.
The Sensex had soared 540.69 points in the previous three sessions following the BJP’s landslide win in UP and Uttarakhand. The 30-share index was trading higher by 26.22 points, or 0.08 per cent, at 29,468.85. A number of sectoral indices, led by consumer durables, healthcare, oil and gas, FMCG and infrastructure, were in the positive space.
The NSE index Nifty edged up by 3.40 points, or 0.03 per cent, to 9,090.40. It had touched a life high of 9,087 yesterday. The increased buying momentum borne out by the fact that foreign funds purchased shares heavily lifted mood.
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Among other Asian markets, Shanghai Composite rose 0.10 per cent while Hong Kong’s Hang Seng was down 0.18 per cent in early trade today. Japan’s Nikkei shed 0.29 per cent. The US Dow Jones Industrial Average also ended 0.21 per cent down yesterday.
Rupee builds on surge, up 9 paise against dollar
A day after it surged to a 16-month high on higher expectations of bold reforms, the rupee made a positive start — though muted — by rising 9 paise to 65.73 against the dollar today, backed by foreign inflows.
Selling of the US dollar by exporters and banks and its weakness overseas gave the rupee an upperhand, dealers said.
Further, a higher opening in the domestic stock market fuelled rupee uptrend, they added.
Yesterday, the rupee had jumped a massive 78 paise to end at 65.82, a nearly one-and-a-half year high, amid expectations that BJP’s emphatic victory in Uttar Pradesh will embolden the government to go for more reforms.
Meanwhile, the benchmark BSE Sensex rose by another 26.22 points, or 0.08 per cent, at 29,468.85 in early trade today.