Stock market update: Equity benchmark indices surged in early trade on Friday amid strong trends in Asian markets and unabated foreign fund outflows. In the early trade, the 30-share BSE Sensex rose 60 points to 77,680. Meanwhile, the Nifty was also up by 25.40 points to 23,551.
As per experts, persistent selling by foreign institutional investors (FIIs) has added pressure to Indian markets. Additionally, near-flat consumer prices in China present further downside risks, as the global economy contends with multiple headwinds. The Reserve Bank of India's upcoming monetary policy meeting in February is also a critical event for domestic investors, who are navigating a challenging environment marked by global volatility and localized pressures.
The interplay of these factors suggests that market participants will closely monitor global and domestic developments in the days ahead, influencing equity market movements.
Rupee against dollar
The rupee dipped 1 paisa to 85.87 against the US dollar in early trade on Friday due to a firm American currency and massive outflow of foreign capital. Higher crude oil prices overseas also weighed on the Indian currency though it found some support tracking positive cues from domestic equity markets, forex traders said.
At the same time, they said, the dollar strengthened on increased demand amid the anticipation of restrictive trade measures by the new US administration under President Donald Trump after January 20. At the interbank foreign exchange, the rupee opened at 85.88 and moved up a tad to 85.87 against the greenback in initial deals, trading with a loss of 1 paisa from its previous close.
(With PTI inputs)
