Rupee rises 22 paise to 89.45 against US dollar in early trade
Mumbai (PTI): The rupee appreciated 22 paise to 89.45 against the US dollar in early trade on Monday supported by foreign fund inflows and a positive trend in domestic equities.
Forex traders said corporate dollar inflows and Brent crude prices hovering near USD 60 per barrel supported investors sentiment further.
At the interbank foreign exchange market, the rupee opened at 89.53 against the US dollar, then gained some ground and touched 89.45 against the US dollar, registering a gain of 22 paise over its previous close.
On Friday, the rupee appreciated 53 paise to 89.67 against the US dollar.
The USD/INR pair has appreciated about 2 per cent from its recent lows, but it is still 5 per cent down on a year-on-year basis, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
"The broader depreciation trend remains intact despite the near term consolidation," Bhansali noted.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent higher at 98.63.
Brent crude, the global oil benchmark, was trading higher by 0.83 per cent at USD 60.97 per barrel in futures trade.
Reports highlight firm RBI intervention last week with heavy dollar selling via state-run banks lifting the rupee from its recent lows, Bhansali said.
The rupee’s rise could also indicate some tailwinds from the lower trade deficit during the month of November as also FPIs who have become buyers of Indian equity, Bhansali added.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 210.57 points higher at 85,139.93, while the Nifty was up 154.80 points at 26,121.20.
Foreign Institutional Investors purchased equities worth Rs 1,830.89 crore on Friday, according to exchange data.
Meanwhile, India's forex reserves jumped by USD 1.689 billion to USD 688.949 billion during the week ended December 12, the Reserve Bank of India said on Friday. In the previous reporting week, the overall reserves increased by USD 1.033 billion to USD 687.26 billion.
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Adani Group emerges lowest bidder for Bengaluru’s 16.75-km tunnel road project
Bengaluru: The Adani Group has become the lowest bidder for both packages of the proposed 16.75-km tunnel road project in Bengaluru, according to sources familiar with the bids opened by Bengaluru Smart Infrastructure Ltd (B-SMILE).
According to a report published by Deccan Herald on Monday, the government estimated the entire project to cost Rs 17,698 crore, while the Adani Group has quoted Rs 22,267 crore. The ports-to-power conglomerate’s bid is about 24% higher for the first package and 28% higher for the second than the government’s estimates, a gap that could prompt authorities to seek the state Cabinet’s approval on the tenders’ fate.
M Maheshwar Rao, Chief Commissioner of the Greater Bengaluru Authority (GBA), who is also the Managing Director of B-SMILE, declined to comment.
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In all, four infrastructure companies had participated in the tenders for the project, which has been proposed under the build-operate-transfer (BOT) model, with 40% funding from the government and the remaining investment to be raised by the private concessionaire.
During the technical evaluation, the Adani Group and the Hyderabad-based Vishwa Samudra Engineering Ltd qualified for the financial round.
According to the report, Dilip Buildcon was disqualified due to a clause that bars firms linked to collapsed bridges or tunnels, while Rail Vikas Nigam Ltd (RVNL) was rejected because its joint venture (JV) partner did not meet technical requirements.
With only two companies left in the fray, the Adani Group emerged as the lowest bidder, ahead of Vishwa Samudra.
The tunnel project officially named the North–South underground corridor, is part of the Congress government’s ambitious to ease Bengaluru’s traffic congestion by building two major underground roads (totalling 40 km) along with 13 flyovers and elevated corridors.
The project is the brainchild of Deputy CM D K Shivakumar, who is also the Bengaluru development minister.
The proposal, however, has faced criticism and political opposition, especially from senior BJP leaders, who object to the alignment that requires acquiring six acres of Lalbagh Botanical Garden, a historic green space.
As per the report, Urban mobility experts have also warned that the tunnel corridor may clash with the alignment of Namma Metro’s Phase 3A, possibly affecting the metro expansion.
