With strong macroeconomic data and exit poll results indicating a third term for the Prime Minister Narendra Modi-led government, the rupee rose 38 paise to hit a three-month high of 83.04 against the US dollar. in early operations on Monday.
Most exit polls on Saturday predicted Prime Minister Narendra Modi will retain power for a third consecutive term, with the BJP-led NDA expected to win a huge majority in the Lok Sabha elections. The market is soaring after the exit poll, as reported by PTI.
The country’s goods and services tax (GST) revenue rose 10 per cent to Rs 1.73 lakh crore in May, according to the Finance Ministry on Saturday. This growth was attributed to an increase in domestic transactions, suggesting persistent economic momentum.
On Friday, foreign investors bought shares worth a net Rs 1,613.24 crore, making them net buyers of Indian stocks. In one of the largest foreign investor transactions in the cash segment, FIIs bought shares valued at Rs 95,467.56 crore and sold shares valued at Rs 93,854.32 crore.
According to Forex traders, the inflow of foreign capital into domestic stocks and the depreciation of the US dollar also supported the local unit.
At the interbank forex market, the local unit opened at 83.09 and gained further to trade at 83.04 against the dollar in early trade, registering a rise of 38 paise over its previous close. The rupee had breached the 83.00 level on March 18 this year.
According to PTI, since April 2023, the local unit recorded the highest single-day rise when it appreciated by 42 paise.
The rupee fell by 13 paise to close at 83.42 against the US dollar on Friday.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, meanwhile fell 0.06 percent to 104.56.
The benchmark price for global oil, Brent crude futures, fell 0.06 percent to $81.06 a barrel.
The 30-share BSE Sensex was trading 1,912.00 points, or 2.59 per cent, higher at 75,873.31 points on the domestic stock market. In first trade, the NSE Nifty rose 597.10 points, or 2.65%, to 23,127.80 points.
On Friday, the government released data showing that India’s economy grew 8.2 percent in the fiscal year that ended in March, marking the country’s position as the world’s fastest-growing economy.
According to Reserve Bank reports released on Friday, the country’s foreign exchange reserves fell by $2.027 billion to $646.673 billion during the week ending May 24. In the previous week, the kitty had reached an all-time high of USD 648.7 billion after a jump of USD 4.549 billion.
The central government’s fiscal deficit during 2023-24, at 5.6 per cent of GDP, was better than earlier estimates of 5.8 per cent due to higher revenue realization and lower expenditure, according to data released on Friday.