The Indian Stock Markets on Thursday opened in green after losses in the last session taking cues from the global developments, including US Iran talks and flat crude oil prices. Market was in red last session with Sensex losing nearly 700 points in a day.
At 9:17 AM, the Sensex was up by 304.02 points or 0.40% at 76,874.37 while Nifty was 23,977.80, up by 63.35 points or 0.26%.
The Indian rupee surged compared to its previous day’s closing starting on a strong note, notching up a 2-month high, appreciating 67 paise against the US dollar at opening.
Rupee opened at 94.30 per US dollar, compared with Wednesday’s close of 94.97. The week started on a negative note for the currency.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “The market sentiment is likely to look up today following the slight easing of the U.S. bond yields. A big positive from the rupee perspective is the huge mobilisation of $136 billion under concessional swap facility. The $127 billion mobilised under the FCNR(B) scheme has come way above the consensus estimates. The implication of this from the market perspective is that the rupee will stabilise, imparting confidence to FIIs. With improving growth and earnings prospects, FIIs are likely to continue buying in India, despite the elevated U.S. bond yields. Also, the huge FCNR(B) mobilisation by banks will help improve their NIMs. This is positive for banking stocks.”
“An interesting feature of yesterday’s market decline is that the 141 point dip in Nifty happened despite a Rs 9500 crores of institutional buying, with FIIs buy figure of Rs 6688 crores and DII buy figure of Rs 2812 crores. So, it is obvious that the brunt of the selling came from retail investors, proprietary traders and bears who used the market weakness to hammer the stocks down. This is likely to reverse today.”
Stock Market Opens In Green, Rupee Hits 2-Month High: What’s Driving The Rally?
