Rupee slumps 15 paise to 74.23 against the US dollar; domestic equities look to be modestly good as of now
Indian equity benchmark Sensex surged over 200 points in early trade on Friday amid a largely positive trend in global equities. The 30-share BSE index was trading 220.53 points or 0.42 per cent higher at 52,543.86 in initial deals. Similarly, the broader NSE Nifty advanced 53.70 points or 0.34 per cent to 15,745.10.
ONGC was the top loser in the Sensex pack, shedding over 2 per cent, followed by PowerGrid, M&M, Maruti, L&T, NTPC and Titan. Bajaj Finserv, Sun Pharma, HCL Tech, Infosys, and Dr Reddy’s were among the gainers.
Sensex ended 178.65 points or 0.34 per cent lower at 52,323.33, and Nifty declined 76.15 points or 0.48 per cent to 15,691.40 on Thursday.
Foreign institutional investors (FIIs) offloaded shares worth Rs 879.73 crore on Thursday.
According to Binod Modi Head-Strategy at Reliance Securities, domestic equities look to be modestly good as of now.
Weak global cues led Indian equities to see profit booking in the last couple of days, he said, adding that more than 100 per cent improvement in advance tax or direct tax collections in the first quarter of 2021-22 so far indicates sustainable corporate earnings in the coming quarters along with strong financial resources for the government to maintain budgeted fiscal deficit.
Easing of business curbs by states led by a sharp decline in Covid-19 positivity rates and reduction in daily caseload continues to offer comfort to investors, he noted.
With 62,480 new coronavirus infections being reported in a day, India's total tally of cases rose to 2,97,62,793. The death toll was the lowest in 61 days with 1,587 fresh fatalities.
Following the US dollar extending gains, the rupee slumped 15 paise to 74.23 against the US dollar, a day after the US Federal Reserve surprised markets with its hawkish statement.
In the Asia market, bourses in Hong Kong, Seoul, and Tokyo were trading on a positive note, while Shanghai was in the red in mid-session deals.
US equities ended on a mixed note in the overnight session, as S&P 500 and Dow Jones ended on a negative note, while technology stocks made a comeback and pushed Nasdaq to near a record close.
International oil benchmark Brent crude was trading 0.92 per cent lower at $72.41 per barrel.