Indian rupee gains on positive domestic equities

On the domestic equity market front, the 30-share Sensex was trading 184.13 points higher at 55,648.52, while the broader NSE Nifty rose 41.75 points to 16,636.65

The Indian rupee advanced 16 paise to 76.27 against the US dollar in the opening trade on Friday, supported by positive domestic equities and a pullback in crude oil prices.

At the interbank foreign exchange, the rupee opened at 76.34 against the US dollar, then gained momentum and touched 76.27, registering a gain of 16 paise from the previous close.

On Thursday, the rupee had appreciated by 19 paise to close at 76.43 against the US dollar.

The BJP on Thursday stormed back to power in Uttar Pradesh, and also retained Uttarakhand, Manipur and Goa, while Arvind Kejriwal's AAP scripted a stellar victory in Punjab, winning a three-fourth majority in elections held across 5 Indian states.

According to market experts, the outcome of these state elections will provide policy continuity and stability, which is important for the market.

The rupee gained as risk appetite rebounded, while haven currencies slumped, said Dilip Parmar, Research Analyst, HDFC Securities.

Geopolitical risks have also begun to reverse course and commodities cooled off, and emerging market currencies and equities advanced.

In the near-term, the rupee is expected to consolidate in the range of 76 to 76.70, Parmar added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.03 per cent to 98.48.

Global oil benchmark Brent crude futures fell 0.13 per cent to USD 109.19 per barrel.

On the domestic equity market front, the 30-share Sensex was trading 184.13 points or 0.33 per cent higher at 55,648.52, while the broader NSE Nifty rose 41.75 points, or 0.25 per cent, to 16,636.65.

Foreign institutional investors remained net sellers in the capital market on Thursday as they offloaded shares worth Rs 1,981.15 crore, as per stock exchange data.