Rupee hits two-year high ahead of RBI monetary policy outcome
The Indian rupee emerged its strongest level since August 2015 on Wednesday. The rupee breached the 64 mark and rose by 25 paise to stand at 63.82 against the US dollar in anticipation of RBI monetary policy.
Sensex traded above 32,651 while Nifty hovered around 10,150 on Wednesday's opening session. Ahead of the RBI's policy outcome, Midcaps too opened on a strong note.
30-share Sensex was up 84.40 points while the Nifty was up 11.25 points. Indian shares gained for the third day with strong corporate earnings. 522 shares advanced against ad decline of 225 shares, while 47 shares were unchanged.
Hero MotoCorp and Lupin were the top gainers on Wednesday's opening session. ONGC, Kotak Mahindra Bank, Ambuja Cements were top losers. The Indian rupee opened at 64.12 against the US dollar.
RBI's Monetary Policy Committee will announce its decision on interest rates on Wednesday and hopes on the outcome have led to Nifty performing well. The RBI, according to analysts is likely to introduce a 25-basis point rate cut. Nirmal Bang International Research institutions said that the outcome may be influenced by 'inflationary pressure from the increase in house rent allowance under the Seventh Central Pay Commission, an upturn in food prices, increase in rural wages and minimum support price for crops and farm loan waivers'.