The rupee extended its losses for the third session in a row, depreciating 19 paise against the US dollar on Wednesday, June 2, to stand at 73.09 following muted domestic stocks and the stronger US currency. In the interbank foreign exchange market, the domestic unit opened on a negative note at 73.13, against the previous close of 72.90, against the dollar, and hovered between 73.04 and 73.30 throughout the meeting. In a first trading session, the local unit fell 26 paise to 73.16 against the greenback.
National unity has lost 64 paise in the three trading sessions until Wednesday. Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, gained 0.35% to 90.14.
“Retail’s long positioning in the market has continued to increase over the past two weeks to reach a lifetime high, while the rich futures base also indicates a high degree of leverage. On the other hand, the recent rally has been widespread, with mid and small cap indices hitting new highs ahead of Nifty, ” said Mr. S Hariharan, Head of Sales, Emkay Global Financial Services.
Given India’s outperformance relative to emerging markets and Asia over the past month, foreign flows are expected to remain somewhat subdued for the coming month. At the sector level, finance and IT have shown relative strength while momentum in the automotive and metals sectors has weakened, ” he added.
Market participants remained vigilant ahead of the Reserve Bank of India’s monetary policy meeting due to be announced on Friday, June 4.
On the national stock market front, the BSE Sensex finished at 85.40 points, down 0.16% to 51,849.48, while the broader NSE Nifty index climbed 1.35 points or 0.01% to close at 15,576.20.
“Markets ended at almost unchanged levels in lackluster trade, but it looks like a corrective pattern has been completed. The 15460 level would be strong support for Nifty and Sensex if it breaks the level it could drop to 15430/15330. The index would have closed below 15,500 today had it not been for gains in the banking and auto sectors. Index giant Reliance was also the best performer and could close above Rs 2,200 after 60 days, ” said Shrikant Chouhan, executive vice president of technical equity research at Kotak Securities.
Nifty closed monthly at ATH levels and continues to trade at roughly the same level. We believe the tone of the markets remains positive and we expect the positive bias to continue. Short term indicators suggest some consolidation and we are waiting for the triggering of impulse parameters … Pharmaceuticals, metals and consumer goods stocks are in the dynamic value zone while bank stocks remain high on a short term perspective Sahaj Agrawal, Head of Research – Derivatives at Kotak Securities.
According to the exchange data, foreign institutional investors were net sellers in the capital market on June 1 as they got rid of shares worth Rs 449.86 crore. Futures on Brent crude, the world’s benchmark for oil, rose 1.12% to $ 71.04 a barrel.