Market update: Rupee continues streak even as Wipro outlook pulls down IT sector, Sensex

Ahead of the Easter weekend, the Indian currency posted its fourth straight rally session, appreciating by 10 paise to 85.54 vs the dollar in early Thursday trade. The weakening US currency, along with a resurgent foreign fund inflow, offset the lacklustre market sentiment and the crude oil price lift. The rupee already gained by 104 paise in the past three sessions since the April 9 close of 86.68 vs the dollar.

 

The appreciation of the rupee came at the heels of gold soaring to a record ₹98,100 per 10 grams (in NCR) as the trade war fears between China and the US pushed investors to seek safe-haven assets.

 

Despite the rupee rally and the fund inflow by foreign institutional investors (FIIs), Indian stock markets opened lower on Thursday morning due to IT companies such as Wipro warning of a weak quarter amid global tensions.

 

BSE benchmark index, Sensex, shaved off its Wednesday gains by 362 points to 76,682.29 while the NSE Nifty slid by 129 points to 23,307.45 in the Thursday morning session. 

 

In the 30-pack Sensex, HCL Tech, Tech Mahindra, and TCS lost big on dismal IT outlook, joined by Tata Steel, L&T, and Titan. Wipro slid 5 per cent during the session after it warned of up to 3.5 per cent slip in IT services revenue in the upcoming quarter.

 

However, ICICI Bank, HDFC Bank, Bharti Airtel, and State Bank of India led the gainers in the BSE benchmark.

 

FIIs, however, continued pouring funds into the market, with them buying stocks worth ₹3,936.42 crore on Wednesday. When markets closed on Wednesday, Sensex and Nifty had posted a third straight day of gains on renewed hopes of further rate cuts, along with the rise in FII inflows.

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