Markets open higher: The Sensex and Nifty opened higher on Monday, boosted by gains in energy stocks following a reduction in windfall tax on crude oil. Broader Asian markets also advanced as US economic data eased fears of a recession.
At 9:25 am IST, the NSE Nifty 50 index (.NSEI) was up 0.36 percent at 24,630.2, while the S&P BSE Sensex (.BSESN) was up 0.3 percent at 80,675.35.
The MSCI Asia ex-Japan index gained nearly 1.1 percent, boosted by slowing inflation and strong U.S. retail spending that lifted investor sentiment.
Eleven of the 13 major sectors posted gains, with the power and oil & gas sectors up 1.2 per cent. Oil & Natural Gas Corp led the gains, rising 2.5 per cent, making it the best performer on the Nifty 50.
Other oil companies, including Oil India and Mangalore Refinery, also saw a 2.5 percent increase each. The increase came after the government’s decision to reduce windfall profits tax on crude oil from 4,600 Indian rupees per tonne to 2,100 rupees ($25) per tonne, effective August 17.
The rupee appreciates
The Indian rupee appreciated 11 paise to 83.84 against the US dollar in early trade on Monday, supported by positive momentum in domestic equities and fresh foreign fund inflows. Currency traders noted that weakening US dollar in the overseas market and falling crude oil prices also bolstered investor sentiment.
At the interbank exchange rate, the rupee opened at 83.88 against the dollar before gaining further ground to touch 83.84, marking an improvement of 11 paise from its previous close.
On Friday, the rupee traded within a narrow range and ended just 1 paisa lower at 83.95 against the US dollar.
Throughout the shortened week, the rupee showed minimal fluctuation, managing to stay just below the critical 84 mark.
“The rupee has been the least volatile currency among its peers, a reflection of the Reserve Bank of India’s decisive actions, which also contributed to a drawdown of nearly USD 5 billion in India’s foreign exchange reserves from the all-time high of USD 675 billion,” said Amit Pabari, MD of CR Forex Advisors.
(With information from Reuters and contributions from PTI)
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