Rupee ends flat at 74.41 on a spike in crude oil prices, dollar buying
Mumbai: The rupee pared its early gains to close almost flat at 74.41 on Tuesday due to dollar buying by banks and resurging crude oil prices.
The rupee opened sharply higher at 74.34 amid heavy buying in local stock markets and raced to hit the day's high of 74.25.
The local unit, however, struggled in the latter half and gave up initial gains to finally settle at 74.41, showing a gain of just 1 paisa over the previous close.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.42 percent to 93.75.
On the domestic equity market front, BSE benchmark Sensex rallied 503.55 points or 1.27 percent to close at 40,261.13. The broader NSE Nifty jumped 144.35 points or 1.24 percent to 11,813.50.
Foreign institutional investors emerged as net buyers in the capital market as they purchased shares worth Rs 740.61 crore on Monday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 1.72 percent to USD 39.64 per barrel.
"Rupee consolidated in a narrow range for the second successive session ahead of the important US Presidential election results. The expectation is that the announcement of the result could take some time but we could get some bit of clarity by this weekend.
"Market participants are also cautious ahead of the FOMC policy statement that will be released later this week. For the week, we expect the rupee to trade with a negative bias and quote in the range of 74.20 and 75.20," Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services, said.
Alankit Limited Managing Director Ankit Agarwal said that the rupee may garner support from an upswing in domestic equities on the back of upbeat economic data from China, Europe, and the US.
It is expected that exporters may sell the greenback at attractive higher dollar/rupee levels, which may further support the rupee, dealers stated.
Traders are expected to refrain from placing large bets on the movement of Indian currency in either direction amid global unprecedented situations. The US will hold its presidential election later today, wherein Democratic nominee Joe Biden is seen taking a significant lead over incumbent President Donald Trump, Agarwal said.
Key economic data from across the world soothed frayed nerves about economic recovery at a time when Europe is struggling with the second wave of accelerating COVID-19 infections, he added.
"Rupee ended higher on back of strong inflows in the capital market mainly banking and financial sector. Also, the dollar index kept trading muted on the back of awaiting the outcome of US Elections which can decide a possible trend for the Dollar index.
"Crude prices saw a rise after a strong decline it has witnessed in recent past few days which kept the rupee rise at check. For the next couple of sessions, rupee can be in a very volatile range of 73.75 - 75.25 range," Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities said.
Global markets approach the US election day in an upbeat mood as risk assets remained strong as the Dollar sold off against major trading currencies, Devarsh Vakil, Deputy Head Retail Research, HDFC Securities said.
"The bias for the spot USD/INR is bullish but it has risen to a level where we feel it will encounter strong resistance. Near term, the pair has resistance at 75.1 and support at 73.9," he added.
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MP HC sets up judicial commission to probe water contamination in Indore
Indore (PTI): The Indore bench of Madhya Pradesh High Court on Tuesday set up a commission of inquiry comprising a former HC judge to probe the issue of water contamination in city's Bhagirathpura, saying the matter requires probe by an independent, credible authority and "urgent judicial scrutiny".
It also directed the commission to submit an interim report after four weeks from the date of commencement of proceedings.
A division bench of Justices Vijay Kumar Shukla and Alok Awasthi constituted the commission while hearing several public interest litigations (PILs) filed simultaneously regarding the deaths of several people in Bhagirathpura due to the consumption of contaminated water.
The HC reserved the order after hearing all the parties during the day, and released it late at night.
The state government on Tuesday told the HC that the deaths of 16 people in Indore's Bhagirathpura area was possibly linked to a month-long outbreak of vomiting and diarrhoea caused by contaminated drinking water.
The government presented an audit report of 23 deaths from the current gastroenteritis epidemic in Bhagirathpura before the bench, suggesting that 16 of these fatalities may have been linked to the outbreak of vomiting and diarrhoea caused by contaminated drinking water.
The report, prepared by a committee of five experts from the city's Government Mahatma Gandhi Memorial Medical College, stated that the deaths of four people in Bhagirathpura were unrelated to the outbreak, while no conclusion could be reached regarding the cause of death of three other people in the area.
During the hearing, the high court sought to know from the state government the scientific basis behind its report.
The division bench also expressed surprise at the state government's use of the term "verbal autopsy" in relation to the report, sarcastically stating that it had heard the term for the first time.
The HC expressed concern over the Bhagirathpura case, stating that the situation was "alarming," and noted that cases of people falling ill due to contaminated drinking water have also been reported in Mhow, near Indore.
In its order, the HC said the serious issue concerning contamination of the drinking water supply in Bhagirathpura area allegedly resulted in widespread health hazards to residents, including children and elderly persons.
According to the petitioners and media reports, death toll is about 30 till today, but the report depicts only 16 without any basis or record, it said.
It is averred that sewage mixing, leakage in the pipeline, and failure of civic authorities to maintain potable water standards have led to the outbreak of water-borne diseases. Photographs, medical reports, and complaints submitted to the authorities prima facie indicate a matter requiring urgent judicial scrutiny, the HC said.
"Considering the gravity of the allegation and affecting the right to life under Article 21 of the Constitution of India and the need for an independent fact-finding exercise, the Court is of the opinion that the matter requires investigation by an independent, credible authority," it said.
"Accordingly, we appoint Justice Sushil Kumar Gupta, former judge of the Madhya Pradesh High Court, a one-man commission of inquiry into the issues relating to water contamination in Bhagirathpura, Indore, and its impact on other areas of the city," the HC added.
As per the order, the commission shall inquire into and submit a report on the cause of contamination -- whether the drinking water supplied to Bhagirathpura was contaminated; and the source and nature of contamination (sewage ingress, industrial discharge, pipeline damage etc).
The panel will also probe the number of actual deaths of affected residents on account of contaminated water; find out the nature of disease reported and adequacy of medical response and preventive measures; suggest immediate steps required to ensure safe drinking water as well as long-term infrastructural and monitoring reforms.
It will also identify and fix responsibility upon the officers and officials found prima facie responsible for the Bhagirathpura water contamination incident, and suggest guidelines for compensation to affected residents, particularly vulnerable sections.
The commission shall have powers of a civil court for the purpose of summoning officials and witnesses; calling up records from the government department, hospitals, laboratories and civic bodies; ordering water quality testing through accredited laboratories; conducting spot inspections.
All state authorities involving district administration, Indore Municipal Corporation, public health engineering department and Madhya Pradesh Pollution Control Board shall extend full co-operation and provide records as sought by the commission, it said.
The state government shall provide office space, staff, and logistical support to the commission, it said.
During the hearing in the day, the state government also presented a status report to the court in this matter.
According to reports, a total of 454 patients were admitted to local hospitals during the vomiting and diarrhea outbreak, of whom 441 have been discharged after treatment, and 11 are currently hospitalised.
According to officials, due to a leak in the municipal drinking water pipeline in Bhagirathpura, sewage from a toilet was also mixed in the water.
