Rupee recovers 34 paise against dollar in early trade

The rupee strengthened by 34 paise to 64.78 against the dollar in early trade today, snapping its two-day falling streak on fresh selling of the US currency by exporters and banks amid sustained foreign funds inflows.

Forex dealers said a strong opening in the domestic equity market also supported the rupee's uptrend, but dollar's strength against other currencies overseas capped the gains.

The rupee had lost seven paise to end at 65.12 against the US dollar on Wednesday at the inter-bank forex market. The market remained closed yesterday on account of Dussehra.
Meanwhile, the benchmark BSE Sensex jumped 261.13 points, or 0.96 per cent, to 27,548.79 in early trade today.

Sensex narrows gains, up 117 points, Nifty above 8,300

Stock market benchmark BSE Sensex has inched down and is up only 117 points up. The benchmark had climbed over 261 points and the NSE Nifty had reclaimed the 8,300 mark in early trade today, snapping its two-session losing streak, on positive cues from other Asian markets.

Inflows from foreign funds and widespread buying by investors also influenced market sentiment.

The 30-share barometer was up 261.13 points, or 0.96 per cent, to trade at 27,548.79 with all the sectoral indices led by oil & gas, consumer durables, PSU and banking trading in positive terrain with gains up to 1.25 per cent.

The Sensex had lost 77.26 points in the previous two sessions. Stock exchanges were closed yesterday on account of Dussehra.

Tata Steel, GAIL, NTPC, Vedanta Ltd, ITC and ONGC were major gainers that supported the rally.

The NSE Nifty too recaptured the crucial 8,300-mark by surging 73.35 points, or 0.89 per cent, to trade at 8,325.05

Brokers said buying by foreign funds and retail investors tracking a firming trend in other Asian markets following overnight gains in Europe and the US after ECB chief signalled more stimulus before the end of the year buoyed mood here.

Among other Asian markets, Japan's Nikkei was up by 2.35 per cent while Hong Kong's Hang Seng rose 1.41 per cent in early trade today. Shanghai Composite edged higher 0.31 per cent.

The US Dow Jones Industrial Average ended 1.87 per cent higher yesterday.