The Indian rupee experienced a marginal decline of four paise, reaching 83.36 against the US dollar on Thursday. This dip occurred amidst a temporary lull in domestic equities, following a remarkable surge to unprecedented levels post the BJP’s decisive victories in three states during recent elections. Despite this, the rupee’s downturn was tempered by a weakening dollar on the global front. Crude oil, a key factor for India, continued to be advantageous, with Brent futures inching up to $74.6 a barrel and US West Texas Intermediate (WTI) futures rising to $69.7 a barrel.
The decline in crude oil prices is particularly beneficial for India, a nation heavily reliant on imports to meet four-fifths of its oil requirements. Meanwhile, the dollar index, gauging the American currency against six major peers, showed a 0.1% decrease at 104. This index compares the US dollar against the euro (EUR), the Japanese yen (JPY), the Canadian dollar (CAD), the British pound (GBP), the Swedish krona (SEK), and the Swiss franc (CHF).
In the domestic market, Nifty and Sensex, which had been on a record-breaking spree, took a pause. The Nifty dropped 86.9 points (0.4%) to 20,850.8, while the Sensex retreated to 69,320.5, down 333.2 points (0.5%) from its previous close. Both indices had reached all-time highs of 20,962 and 69,744.6 on Wednesday. Foreign institutional investors, after eight consecutive days of being net buyers, turned net sellers, offloading Indian shares worth Rs 79.9 crore on Wednesday. Conversely, domestic institutional investors net purchased equities, amounting to Rs 1,372 crore for the day, following the net offloading of shares worth Rs 1,399 crore the previous day.
On the prior day, the rupee had strengthened by five paise, settling at 83.32 against the greenback. This intricate interplay of currency movements, global oil prices, and shifts in investor sentiment collectively shaped the economic landscape on that particular trading day.
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