Rupee surged to 83.04 against US dollar after exit poll result

The market is soaring after exit poll (Representative Image)

With strong macroeconomic data and exit poll results indicating a third term for the government led by Prime Minister Narendra Modi, the rupee surged 38 paise to reach its three-month high level of 83.04 against the US dollar in early trade on Monday.

Most of the exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term, with the BJP-led NDA expected to win a big majority in the Lok Sabha elections. The market is soaring after exit poll, as reported by PTI.

The country's Goods and Services Tax (GST) receipts increased 10 per cent to Rs 1.73 lakh crore in May, according to the finance ministry on Saturday. This growth was attributed to an increase in domestic transactions, which suggests a persistent economic momentum.

On Friday, foreign investors bought shares worth a net of Rs 1,613.24 crore, making them net purchasers of Indian stocks. In one of the most significant foreign investor transactions in the cash segment, FIIs purchased shares valued at Rs 95,467.56 crore and sold stocks valued at Rs 93,854.32 crore.

According to Forex traders, inflow of foreign capital into domestic shares and a depreciating US dollar also supported the local unit.

At the interbank foreign exchange market, the local unit opened at 83.09 and gained further to trade at 83.04 against the greenback in initial deals, registering an increase of 38 paise from its previous close. The rupee had breached the 83.00 level on March 18 this year.

According to PTI, since April 2023, the local unit clocked the highest single day rise when it appreciated by 42 paise.

The rupee declined 13 paise to close at 83.42 against the US dollar, on Friday.

The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.06 percent at 104.56 in the meantime.

The benchmark for global oil, Brent crude futures, dropped 0.06 percent to USD 81.06 a barrel.

The 30-share BSE Sensex was trading 1,912.00 points, or 2.59 per cent higher, at 75,873.31 points on the domestic equity market. In the first trade, the NSE Nifty increased by 597.10 points, or 2.65%, to 23,127.80 points.

On Friday, the government released a data, that showed India's economy grew by 8.2 per cent in the fiscal year that ended in March, marking the country's position as the fastest growing economy in the world.

According to the reports by Reserve Bank released on Friday, the country's forex reserves dropped by USD 2.027 billion to USD 646.673 billion for the week ended May 24. In the previous reporting week, the kitty had reached an all-time high of USD 648.7 billion after a jump of USD 4.549 billion.

The central government's fiscal deficit during 2023-24 at 5.6 per cent of the GDP was better than previous estimates of 5.8 per cent on account of higher revenue realization and lower expenditure, according to the data released on Friday.