The Sensex rebounded on Wednesday and ended 304.83 points up at 37,717.96, while the Nifty50 ended 82.40 points higher at 11,369.90 after reports that the government may announce measures this weekend to support the domestic currency.
The rupee also regained losses after news of a planned review of the economy this weekend by the Prime Minister Narendra Modi. The measures will probably include steps to curb the decline in the rupee and oil prices, said news reports quoting an official who did not want to be identified.
Moreover, the rupee rebounded from its fresh all-time low and strengthened against the US dollar after better-than-expected August trade data.
Export Trade during August 2018 recorded at US $27.84 billion, a positive growth of 19.21%. Exports excluding Petroleum also reported a positive growth of 17.43%.
— Suresh Prabhu (@sureshpprabhu) September 11, 2018
After falling to a lifetime low in early trade, the rupee rebounded by 69 paise to trade at 72 against the US dollar in late afternoon trade on suspected intervention by the RBI. The currency traded in a range of 71.86 to 72.91 during the day. On Tuesday, after scaling a historic low of 72.74, the local unit finally settled day at 72.69, showing a loss of 24 paise, or 0.33%.
No fundamental rationale for rupee to depreciate to levels we saw till yesterday. It reflected overreaction of market operators. Government and RBI will do everything to ensure that rupee does not slide to unreasonable levels. Today’s correction seems to reflect that realisation.
— Subhash Chandra Garg (@SecretaryDEA) September 12, 2018
Oil prices traded near $80 a barrel on growing concern over global supply. The markets await consumer price inflation and index of industrial production data after 5.30pm on Wednesday.
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