Indian stock indices extend gains to third week, rupee appreciates slightly

New Delhi [India], October 31 (ANI): The rally in Indian stock indices continued for the third straight week as they jumped during ten out of the past 11 sessions.
At 9.35 am, Sensex traded at 60,541.49 points, up 581.64 points or 0.97 per cent, whereas Nifty traded at 17,960.20 points, up 173.40 points or 0.97 per cent.
All the Nifty sectoral indices were in the green this morning, with Nifty IT and Nifty pharma rising the most.
Coming to specific stocks, Tech Mahindra, Maruti Suzuki India, Dr Reddy’s, Eicher Motors, and Divi’s Laboratories were the top five gainers among the Nifty 50 companies, National Stock Exchange data showed.
The indices rose on Monday tracking gains from Friday’s US markets amid hopes of slower interest rate hikes coupled with healthy corporate earnings back here in India and the seeming return of foreign funds during the past week.
“However, traders may be concerned as data released by the Reserve Bank of India showed India’s foreign exchange (forex) reserves declined USD 3.8 billion to USD524.5 billion for the week ending October 21. Reserves are at their lowest levels since July 2020,” said Mohit Nigam Fund manager and Head – of PMS, Hem Securities.
India’s forex reserves have been depleting for months now because of RBI’s likely intervention in the market to defend the depreciating rupee.
Further, Nigam said sugar stocks would be in focus as the government extended restrictions on sugar exports till October 31 next year — a move aimed at increasing the availability of the commodity in the domestic market. Earlier, the restrictions were imposed till October 31 this year.
“The driving force behind the ongoing rally (in Indian stocks) is the strength of the US economy which is indicating a lower probability of an immediate US recession and, more importantly, indications that inflation is plateauing and might show a declining trend soon,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The fact that FPIs have turned buyers during the last 2 days is another positive. However, DIIs might sell at higher levels since valuations are high,” Vijayakumar added.
Meanwhile, the rupee appreciated slightly from the previous close to open trade at 82.37 this morning against the US dollar. On Friday, it closed at 82.47. (ANI)