Sensex opens in green, Indian rupee appreciates against the US dollar

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The S&P Bombay Stock Exchange Sensitive Index (Sensex) opened on Wednesday at 40,921.71 points in the green. After Finance Minister Nirmala Sitharaman saw a massive drop of 987 points on February 1, 2020, when she presented the 2020-21 Union budget, the Sensex has risen since Monday.

On Tuesday, the Sensex closed at 40,789.38 points. The Sensex was trading at 40,860.38 points at 9:30 a.m. and rose 66.71 points or 0.16 percent. The broader 50's Nifty on the National Stock Exchange (NSE) opened at 12,005.85 points after closing at 11,979.65 points. The Nifty was trading on Wednesday at 9:30 a.m. at 12,001.65 points.

Even the Indian rupee rose 8 pairs against the US dollar in early trading to 71.17 on Wednesday, following gains on the domestic stock market and new inflows from foreign funds. According to currency traders, the rupee is trading in a narrow range as market participants wait for clues to the Reserve Bank of India's monetary policy outcomes. In addition, the RBI's comment on the inflation and growth forecast is being followed closely by investors.

The Reserve Bank of India (RBI) is expected to announce the outcome of its sixth semi-annual monetary policy statement for 2019-20 on February 6, 2020. On the interbank currency exchange, the rupee opened at 71.25 and hit a high of 71.17. There was an increase of 8 paise over the previous end.

On Tuesday, the rupee chose 71.25 against the US dollar for the day.

However, the domestic unit was unable to hold on to the gains and was trading at 71.19 at 10:10 against the dollar. The domestic stock exchanges were opened on Wednesday with a positive note. The Sensex reference indices were 182.25 points higher at 40,971.63 and Nifty was 53.90 points higher at 12,033.55.

Foreign institutional investors (FIIs) remained net buyers on the capital market as they sold stocks worth 366.21 billion rupees on Tuesday, according to preliminary stock market data. Rising crude oil prices and an appreciation of the American currency against other currencies overseas, however, weighed on the rupee.

Brent crude futures, the global oil benchmark, rose 1.17 percent to 54.59 barrels. The dollar index, which measures the strength of the greenback versus a basket of six currencies, rose 0.05 percent to 98.00.

The yield on 10-year government bonds in morning trading was 6.51 percent.

(With input from IANS and PTI)