The Indian rupee on Tuesday depreciated by about 9 paise after intervention of the Reserve Bank helped strengthen the currency from a 40 paise decline earlier in the day, forex dealers said.
The rupee closed at 82.60 compared with its previous close of 82.51. During the day it sank to 82.90 against the US dollar.
“Rupee continued to consolidate in a narrow range even after inflation on the domestic front came lower,” said Gaurang Somaiya, Forex & Bullion analyst, Motilal Oswal Financial Services.
“Inflation in India rose at 5.88% against expectations of 6.4%. We expect the USD-INR(Spot) to trade sideways and quote in the range of 82.20 and 83.05,” he added.
Benchmark stock indices on Tuesday gained by over more than half a percentage point, tracking firm global cues.
The S&P BSE Sensex rose 403 points, or 0.65%, to 62,533.31. Stocks that gained the most in the Sensex pack include IndusInd Bank (2.46%), Bajaj Finance (1.75%), Infosys (1.65%), HCL Tech (1.60%) & M&M (1.59%).
The NSE Nifty-50 index too gained 110.85 points, or 0.6%, to end the session at 18,608 points.
Ajit Mishra, vice-president, Technical Research, Religare Broking Ltd., said, “Continued buoyancy in the banking pack combined with recovery in the IT majors played a key role in recovery while others traded mixed. The market breadth was also positively inclined, thanks to noticeable buying in the midcap and smallcap space.”
“Indications are in the favour of further rebound, however a lot would depend upon how the US market reacts to the inflation data,” he added.
