Rupee Locks Of Hair By The Side Of Seven Week Low - July 09, 2009

The rupee on Wednesday virtually touched the crucial 49 level before closing at a seven-week low of 48.88/89 against the US dollar, cheaper by 44 paise, backed by the weak local stocks amid heavy capital outflows. The rupee was last seen at this level in May. It had closed at 49.40/42 a dollar on May 15 and in the following trading day, it closed at 47.88/89 against the dollar.

In the domestic arena, the equity markets as the Indian benchmark Sensex declined by 401 points or 2.83 per cent on account of weakness in global stocks in the wake of rising doubts about recovery in the economy.

The rupee resumed weak at 48.76/77 a dollar against its previous close of 48.44/45 a dollar and later traded in a range of 48.73 and 48.94 during the day.

The dealers at the Interbank Foreign Exchange market said that the fall in equity market raised fears of capital outflows even as the foreign institutional investors (FIIs) pulled out sizeable funds on July 7. They said there was little dollar buying or selling during the day.

Foreign Institutional Investors Pump In A Week - June 09, 2009

The net investment made by the Foreign institutional investors (FIIs) on Friday stood at Rs 831.95 crore in the domestic stock market that took their total inflow to over Rs 2,000 crore during the week. The FIIs were the gross purchasers of shares worth Rs 4,022.61 crore, while the gross sales by them valued at Rs 3,190.66 crore, resulting in a net buy of Rs 831.95 crore, as per the provisional data available with the BSE.

During the week, the value of shares bought by the overseas investors was worth Rs 20,895.30 crore, while they sold equities worth Rs 18,879.50 crore, which resulted in a net inflow of Rs 2,015.80 crore in the Indian stock market, as per the latest data available with SEBI.

However, the domestic institutional investors, during the trade, booked profit and sold shares worth Rs 480.13 crore.

However, a similar trend was witnessed among proprietors as well as non- resident Indians (NRIs) and they sold stocks in total worth Rs 98.56 crore.