Rupee slips 3 paise to 74.18 per USD
Mumbai: The rupee depreciated by 3 paise to close at 74.18 against the US dollar on Tuesday as higher crude oil prices and a stronger greenback overseas weighed on sentiment.
The rise in crude oil prices had a negative impact on the domestic unit, but robust domestic equities supported the rupee and restricted the fall, experts said.
At the interbank foreign exchange market, the domestic currency opened higher at 74.04 a dollar, but could not hold the momentum and finally settled 3 paise lower at 74.18.
During the session, the local unit reached a high of 74.02 and touched 74.30 at the lower end.
On Monday, the rupee had lost 7 paise to close at 74.15 against the US dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, strengthened 0.17 percent to 92.87.
Brent crude futures, the global oil benchmark, rose 1.34 percent to USD 42.97 per barrel.
In the equity markets, the 30-share BSE Sensex rose 680.22 points or 1.60 percent to close at its lifetime peak of 43,277.65.
The broader NSE Nifty too ended at a record 12,631.10, up 170.05 points or 1.36 percent.
"Rupee traded weak after the Reserve Bank of India (RBI) intervened in spot and then paid in forward to neutralize liquidity a kind of swap seen when the market needs to balanced.
"The range on rupee remains near 74.00-74.75. Crude prices also inching higher crossing USD 42 and USD 40 in Brent and WTI, respectively, can keep rupee little bit weak going ahead," said Jateen Trivedi, Senior Research Analyst (Commodity and Currency) at LKP Securities.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,548.39 crore on Monday, according to provisional exchange data.
"Central bank is absorbing a lot of dollar flows and that is restricting the appreciation of Indian currencies. For the third consecutive session Rupee traded near the 74 mark. In the last two days, WTI Crude oil prices rose around 10 percent on vaccine optimism and Biden's US Presidential victory," said Devarsh Vakil, Deputy Head Retail Research, HDFC Securities.
The rupee fell against the US dollar despite sharp gains in domestic and global equities, but primarily on the back of short covering and marginal rebound in dollar against its major crosses, said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
"Riskier assets got a boost after Pfizer said the experimental COVID-19 vaccine is more than 90 percent effective based on initial trial results," he further said.
On the domestic front, the focus will now be on inflation and industrial production data that will be released this week and price rise could keep the rupee gains in check, 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.
