On Tuesday, May 4, the rupee strengthened by 10 paise against the US dollar for the second consecutive day, compared to $ 73.85 sold by traders. In addition, high crude oil prices and losses in domestic equities today limited profits for the local entity. In the interbank forex market, the domestic unit opened at 73.83 and recorded an intra-day high of 73.76. It saw a low of 73.97. In an opening trading session, the local unit gained 13 paise to Rs 73.82 against the greenback. On Monday, May 3, the local unit fell to 73.95 against the dollar.
Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, rose 0.42 percent to 91.33.
The USD / INR pair opened the day slightly above 73.87, 17 paise more than USD since Monday’s close. The currency pair fell sharply from a high of 75.32 at 22-4-2021 and a fresh low at 73.87, despite crossing the 300,000 mark on the 10th day of consecutive Kovid affairs, ‘Kshitij Purohit, Lead International Products and Commodities’ In CapitalVia Global Research Limited.
Mr. Purohit said, “In the current situation, the increase in the exchange rate of the rupee above the level of 74.00 will be volatile, and a faster recovery is expected to reach the level above 74.50 in the coming sessions.”
“There is an excess of $ supply, leading to disruption of the cash premium by more than 16%.” Hence the exporters and others sold the dollar and rose to a high of Rs 74.32 to reach 73.85. If this situation continues today, we can see the sell-off again. Aneesh Kumar Bhansali, Head of Treasury, Finrex said, RBI may have to take steps to control absurd cash and premium levels.
On the domestic equity market front, the BSE Sensex lost 465.01 points or 0.95 percent to close at 48,253.51, while the broader NSE Nifty slipped 137.65 points or 0.94 percent to close at 14,496.50.
Benchmark indices were dropped for the second time in three days on May 04, following concerns over the sale of FPIs in recent days and further action was expected to deal with Kovid’s position …. Volume on NSE from recent average There were more who were suggesting this. Mr. Deepak Jasani, Head of Retail Research, HDFC Securities, said that purchases were downgraded by domestic institutions, while retail and HNI started to benefit from negative forward-fall ratios.
“The market is not stabilizing at any specific level, which is indicative of some more uncertainties in the near term.” The Nifty / Sensex closed below the 14500/48300 level, which would open up the possibility of hitting the 14400/14370 (48000/47900) level, however, it is necessary for the market to stay above the 14450-48100 level for upward bias. ‘ ‘Srikanth Chauhan, executive vice president (equity technical research), Kotak Securities, said.
As per exchange data, foreign institutional investors were net sellers in the capital market on May 3 as they sold shares worth Rs 2,289.46 crore. Brent crude futures, the global oil benchmark, rose 1.81 percent to $ 68.78 a barrel.