Rupee falls 16 paise to 86.88 against US dollar in early trade
Mumbai (PTI): The rupee declined 16 paise to 86.88 against the US dollar in early trade on Tuesday amid a strengthening greenback, sustained FII outflows, and a rise in Brent crude prices.
A rebound in the domestic equity markets prevented further fall in the domestic unit, according to forex traders.
At the interbank foreign exchange, the local unit opened at 86.83, before sliding further to 86.88, down 16 paise from Monday's close of 86.72.
"The rupee was again sold off on Monday as month-end dollar demand kept rupee lower from a high of 86.56 to 86.75. Due to risk of sentiments, the market is expected to buy dollars to take it higher against the rupee," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Meanwhile, the domestic equity markets rebounded on Tuesday with the 30-share BSE Sensex rising 117.57 points to 74,571.98 in early trade, while Nifty was up 31.3 points to 22,584.65.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 106.62.
Brent crude, the global oil benchmark, went up 0.51 per cent to 75.16 per barrel in futures trade.
Foreign institutional investors (FIIs) offloaded equities worth Rs 6,286.70 crore on a net basis on Monday, according to exchange data.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
'Last rites' of INDIA bloc: BJP on Cong-DMK fallout in Tamil Nadu
New Delhi (PTI): The BJP on Wednesday took a swipe at the Congress for extending support to Vijay's TVK in forming the government in Tamil Nadu and breaking away from its long term ally DMK, saying the party has a history of "betraying" its allies.
The saffron party also attacked the opposition INDIA bloc, claiming the alliance is "falling apart like a pack of cards" and lacks any common ideology or vision.
The Tamil Nadu Congress has decided to support TVK leader Vijay in forming a secular government in the state, sources said.
The decision to support the TVK was taken at an urgent meeting of the Political Affairs Committee (PAC) of Tamil Nadu Congress late on Tuesday night.
Reacting to the development, BJP national spokesperson Shehzad Poonawalla claimed the INDIA alliance had effectively come to an end after the declaration of assembly election results on May 4.
"There is nobody whom the Congress has not deceived. Imagine what they will do to the Samajwadi Party if they have done this to the DMK," he wrote in a post on X.
Calling it the "last rites" of the INDIA bloc, Poonawalla, in a video post, said, "It has become a Bharat free of the DMK, TMC and the Left, and now Congress has dumped the DMK for the TVK."
The BJP spokesperson alleged that the opposition bloc was formed solely out of political compulsions and personal ambitions.
"The INDI alliance never had any mission or vision. It was only about ambition for position, corruption, commission and obsession against Modi ji that they came together. But now it is all falling apart like a pack of cards," he said.
Questioning the unity of the opposition parties, Poonawalla said the alliance was absent in several states during the election.
"Where was the INDI alliance in Bengal, in Kerala, in Gujarat, in Punjab, in Delhi, in Haryana, in Karnataka? There is no INDI alliance," he said.
The DMK on Wednesday described the Congress move to extend support to TVK as a "backstab" by its long-time national ally.
Speaking to PTI videos, DMK spokesperson Saravanan Anadurai said, "The Congress party has decided to ally with the TVK, pledging their support to the party. I think they have backstabbed... They have backstabbed the people of Tamil Nadu. They've backstabbed the mandate given by the people of Tamil Nadu."
He said that the decision came even before the electoral process had fully concluded.
"Even before the ink on the returning officer's signature on the victory certificate dried up, they've chosen to go ahead with an alliance," he said.
Vijay's TVK won 108 seats in the 234-member Tamil Nadu Assembly, falling short of the halfway mark. He needs the support of 10 MLAs to form a government with a simple majority. The results were declared only on Monday.
The Congress has won five seats, while the Pattali Makkal Katchi (PMK) has bagged four seats. The CPI and CPI-M have two seats each. The outgoing ruling party, Dravida Munnetra Kazhagam (DMK), has won 59 seats while the All India Anna Dravida Munnetra Kazhagam (AIADMK) has won 47 seats.
The Bharatiya Janata Party (BJP) has won only one seat, and so have the Desiya Murpokku Dravida Kazhagam (DMDK) and the Amma Makkal Munnettra Kazagam (AMMK), while the VCK has won two seats.
The Congress had fought the assembly polls in a pre-poll alliance with the DMK, while the BJP had a tie-up with the AIADMK.
