Market gains but Rupee falls

Mumbai: Recovering from the previous session’s losses, the BSE Sensex today opened 125 points up in the early trade while the Indian Rupee continues to fall and dropped by 11 paisa against US dollar today morning.

The 30-share index of the Bombay Stock Exchange, which earlier lost about 260 points in the previous two sessions, recovered by 124.75 points or 0.62 per cent at 20,425.85 level in the opening trade.

Similarly, the broad-based National Stock Exchange index Nifty also moved up by 36.35 points or 0.60 per cent to 6,116.15 points.

Brokers said fresh buying by funds and retail investors on firming trend in Asian markets, helped the Sensex recovery.

Stocks of metals, healthcare, oil and gas and realty sectors were trading in green.
But even the strong opening in the stock market did not help the Rupee to recover and it declined by 11 paise to Rs 45.43 a dollar on continuing demand of dollar from banks and importers.

At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed lower at 45.40/41 per dollar as against the yesterday's closing level of 45.32/33 per dollar and moved down further to 45.43 per dollar before quoting at 45.33/34 per dollar at 1030hrs.

Persistent dollar demand from banks and importers in view of dollar appreciating against other currencies in overseas market dragged the Indian currency's value against the dollar, said a forex dealer.

The dollar in New York market yesterday extended its gains by one per cent against the Euro and Japanese Yen after the US data showed a strong jump in private hiring last month, fueling optimism over the country's economic outlook.

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