The Indian currency depreciated by 4 paise on Thursday morning as the US Federal Reserve (Fed) continued to keep rates on hold. The US Fed said it expects the rates to be held higher in the short term. This shattered hopes for future rate cuts, sending the rupee down.
Amit Pabari, MD of CR Forex Advisors chipped in, "Despite pressure from former President Donald Trump for deeper cuts, Fed Chair Jerome Powell emphasized a data-driven approach, citing stable unemployment and positive inflation trends."
Even as the dollar index slipped 0.14 per cent to 107.84, the rupee fell to 86.59 against the American currency on early Thursday trade. This shaved off the 2 paise gain the rupee had when it settled on Wednesday.
V.K. Vijayakumar of Geojit Financial Services said that the Fed decision was expected.
Foreign investment outflow from the nation's markets continued, with FIIs offloading Rs 2,583.43 crore worth of equities on Wednesday alone.
Bajaj financial stocks-led rally lifts Sensex, Nifty
Despite dipping in early trade, the Sensex and Nifty recovered as Bajaj Finance and Bajaj Finserv equities gained momentum. Sensex gained more than 104 points, while Nifty lifted by at least 64 points.
Bajaj Finance saw a 4.52 per cent lift in stock price on Thursday morning trade, one day after it posted an 18 per cent jump in its quarterly consolidated net profit to reach Rs 4,308 crore. Bajaj Finserv shares rose by more than 3 per cent.
Tata Motors was punished as the automaker posted an 8 per cent slide in consolidated net profit for the third quarter to Rs 5,578 crore.
Power Grid, IndusInd Bank, NTPC, and Bharti Airtel were the major gainers in morning trade, while ITC Hotels, Infosys, UltraTech Cement, ICICI Bank, and Titan traded in the red.
