Rupee Rebounds From One-Week Low as Indian Stocks Reverse Lossesby
Benchmark share gauge completes sixth straight day of gains
Expectations of equity inflows helped boost sentiment: Kotak
India’s rupee rebounded from a one-week low as local stocks reversed losses amid expectations the nation will attract more equity flows.
The currency ended 0.2 percent higher at 67.2150 a dollar in Mumbai, taking its advance this month to 1.8 percent, prices from local banks compiled by Bloomberg show. It fell 0.2 percent earlier to a one-week low of 67.5125. The S&P BSE Sensex index of shares erased a decline of as much as 0.8 percent to close 0.6 percent higher and complete a sixth straight day of gains, its longest winning run since October.
“The revival in stocks helped the rupee spring back into gains,” said Anindya Banerjee, associate vice-president for currency derivatives at Kotak Securities Ltd. in Mumbai. Stocks advanced as there were potential inflows seen on account of the government’s share sale in Container Corp. of India, he said.
Overseas investors bought $115 million more Indian equities than they sold on Tuesday, a fifth day of inflows, data compiled by Bloomberg show. Shares in Europe also rebounded Wednesday after two days of declines as investors speculated on further stimulus support from the European Central Bank.
Indian sovereign bonds fell for a second day, with the 10-year yield rising one basis point to 7.65 percent, according to prices from the Reserve Bank of India’s trading system.