Rupee rises for 3rd day, up 27 paise to 74.19 per USD
Mumbai: The rupee continued its winning run for the third session in a row on Wednesday, spurting 27 paise to settle at 74.19 against the US dollar amid unabated foreign fund inflows and a weak greenback overseas.
At the interbank forex market, the domestic unit opened at 74.49 against the US dollar and touched an intra-day high of 74.09 and a low of 74.52.
It finally closed at 74.19 against the greenback, registering a rise of 27 paise over its previous close.
The rupee had on Tuesday appreciated 16 paise to finish at 74.46.
"Indian Rupee appreciated majorly on the back of weakness in the dollar. The dollar slipped as rising COVID-19 cases in the US forced local authorities to impose fresh restrictions to curb the outbreak.
"Moreover, US Federal Reserve Chair Jerome Powell warned that surge in COVID-19 cases poses risk to the economy and would require more support from Federal Reserve and Government," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.21 percent down at 92.22.
Mukadam added that the "rupee may trade in the range of 73.65 to 74.80 in next couple of sessions".
On the domestic equity market front, the 30-share BSE Sensex ended 227.34 points or 0.52 percent higher at a record 44,180.05. The broader NSE Nifty too surged 64.05 points or 0.5 percent to its lifetime high of 12,938.25.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 3,071.93 crore on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 1.01 percent to USD 44.19 per barrel.
"Rupee after opening on a flat note appreciated in the latter half of the session following suspected dollar inflows that hit the market. The currency is likely to extend its gains in the next couple of sessions as FIIs continue to pour in funds in the equity segment," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
Somaiya added that "in the last couple of sessions FIIs have poured in another USD 1 billion taking the total to USD 5.1 billion in this month. We expect the USD-INR (Spot) to trade lower and quote in the range of 73.90 and 74.40."
According to Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities, the Indian rupee extended its gains on Wednesday supported by inflows into local stocks and dollar selling by exporters.
"The RBI intervention capped downside as the dollar buying from the central bank came around the rate of 74.12-74.13 during the day. However, strong selling from exporters pushed the pair towards the short-term support of 74. The pair may remain under pressure and head towards 74 mark on strong inflows and dollar supply from exporters," Vakil added.
"The Indian Rupee appreciated against the U.S. Dollar supported by foreign fund inflows into the domestic equity and debt markets. However, PSU dollar purchases, rumored to be on behalf of the central bank, trimmed some of the gains," said Sriram Iyer, Senior Research Analyst at Reliance Securities.
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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.
