Rupee slumps 18 paise against US dollar to 74.36
Mumbai: The rupee declined by 18 paise to close at 74.36 against the US dollar on Wednesday, tracking a strengthening American currency in the overseas market and higher crude prices.
However, a strong rally in domestic equities and unabated foreign fund inflows restricted the slide of the domestic unit, forex traders said.
At the interbank foreign exchange market, the local currency opened on a weak note at 74.24 and swung between the day's high of 74.18 and a low of 74.50 to the US dollar.
The rupee finally settled at 74.36 against the greenback, down 18 paise over its previous close.
The rupee had ended at 74.18 on Tuesday.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.15 percent to 92.87.
Meanwhile, Brent crude futures, the global oil benchmark, spiked 3.26 percent to USD 45.03 per barrel.
"Indian rupee depreciated amid strong dollar and surge in crude oil prices. Further, the rupee slipped on worries over a slowdown in global economic recovery due to a resurgence in COVID-19 cases.
"Further, the market remained cautious ahead of key macro-economic data like CPI and IIP... Rupee may trade in a range of 73.80 to 74.80 in the next couple of sessions," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
The BSE Sensex surged 316.02 points or 0.73 percent to close at a record 43,593.67.
Similarly, the broader NSE Nifty climbed 118.05 points or 0.93 percent to its all-time closing high of 12,749.15.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 5,627.32 crore on Tuesday, according to provisional exchange data.
"India CPI data is likely to show that Inflation remained above the Reserve Bank of India medium-term target range of 2-6 percent. India's Industrial Production data forecasted to show factory output contracted for 7 consecutive months," Mukadam added.
Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities, said, "Indian rupee fell in line with other Asian currencies as dollar index rebounded and tracking the spike in crude oil prices. The rupee has been relatively weak even after strong foreign fund flows of around USD 2.3 billion in equities as RBI chose to absorb the flows rather than letting currency appreciate."
Oil futures rose after a report showed that US crude inventories fell by more than expected as prices continued to be supported by news of successful trials of a vaccine for coronavirus, he added.
Expectations of recovery have boosted Asian currencies and led to a broad-based rally in Asian shares and capped losses in the domestic unit, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
"The Indian Rupee depreciated against the US Dollar on constant dollar-buying by state-run lenders, rumored to be on behalf of the central bank, to offset the impact of foreign inflows... So far the Indian equities and debt markets have already seen close USD 3 billion inflows this month and we believe that RBI could be present to mop the flows," he added.
"We expect the USD/INR (Spot) to trade higher and quote in the range of 74.05 and 74.50," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
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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.
