As shares consolidate, weak rupee lifts IT stocks

Asian shares traded mixed amid trade concerns

Indian share market continued to consolidate on Wednesday ahead of the expiry of June futures & options contracts on Thursday. The 30-share BSE Sensex fell 6.35 points to 35,483.69 and the 50-share NSE Nifty declined 19.90 points to 10,749.30.

The Nifty Midcap index extends losses, falling 0.8 percent on weak market breadth. More than two shares declined for every share rising on the BSE.

Oil retailers IOC, HPCL and BPCL dropped 5 percent each after Brent crude futures traded above $76 a barrel.
ICICI Bank, ITC, L&T, SBI and Axis Bank slipped 1-2 percent while HDFC Bank, TCS, HDFC, HUL and Infosys gained 0.6-1.6 percent.

The rupee recovered some opening losses to trade 22 paise lower at 68.47 against the dollar.

It plunged by 30 paise to hit a 19-month low of 68.54 against the dollar in opening trade on strong month-end dollar demand from importers and banks amid sustained foreign capital outflows.

This is the rupee’s lowest level against the greenback since November 29, 2016.

The dollar’s strength against some currencies overseas weighed on the local unit but a higher opening of the domestic equity markets capped the losses, traders said.

Foreign portfolio investors (FPIs) sold shares worth Rs 538.40 crore yesterday, as per provisional data issued by the stock exchanges.

Yesterday, the rupee lost 11 paise to end at 68.24 against the US currency.

Oil prices rose today, pushed up by supply disruptions in Libya and Canada and after US officials said all countries should stop Iranian crude imports from November.

Brent crude futures were at $76.65 per barrel, up 0.45 percent, from their last close.

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