The rupee recovered from its all-time low level and settled for the day with gains of just 4 paise at 84.69 (provisional) against the dollar in a range-bound trade on Tuesday, amid a positive trend in domestic equities.
Forex traders said the rupee has been on a downtrend largely on the back of Donald Trump’s rhetoric on Brics currency, political instability in the Eurozone, weaker domestic macroeconomic indicators and unabated foreign portfolio outflows.
US President-elect Trump on Saturday threatened a 100 per cent tariff on Brics nations if they act to undermine the dollar.
Moreover, market participants are also awaiting cues from the upcoming RBI monetary policy on December 6, which will likely focus on balancing inflation and growth.
At the interbank foreign exchange, the rupee opened at 84.75 and moved in a narrow range and touched an intra-day high of 84.64 and an all-time low of 84.76 against the greenback. On Monday, the rupee depreciated 13 paise to close at an all-time low of 84.73 against the dollar.
Adani stocks
The shares of seven Adani Group firms ended in the green on Tuesday, with Adani Ports surging 6 per cent, emerging as the biggest gainer among the Sensex and Nifty firms.
The shares of Adani Green Energy went lower by 1.17 per cent, Adani Power dipped 0.87 per cent, Adani Total Gas (0.83 per cent) and Adani Energy Solutions (0.60 per cent).
The BSE benchmark Sensex jumped 597.67 points or 0.74 per cent to settle at 80845.75 and the NSE Nifty went up by 181.10 points or 0.75 per cent to 24457.15.
Ports-to-energy Adani Group is better off financially now than at the time when it was under attack from short-seller Hindenburg, US-based research firm Bernstein said citing dramatic drop in shares pledged by promoters and low leverage.
Adani settlement
Several entities linked to the Adani Group have approached the India markets regulator seeking to settle a case that accuses them of violating public shareholding regulations at some listed companies, according to media reports.
The Securities and Exchange Board Of India (Sebi) had sent notices to Adani Enterprises, the group’s flagship, as well as Adani Power, Adani Ports and Adani Energy alleging they had wrongfully categorised the shareholding of certain entities.
The groups’ breaches of a minimum public shareholding requirement date back to 2020 and the Sebi had sought to recover about ₹2,500 crore ($295 million) from the entities.
Adani Enterprises and one of its directors, Vinay Prakash, as well as an Ambuja Cements director Ameet Desai, have proposed a settlement. Another proposal for a ₹28 lakh ($33,035) settlement is from Emerging India Focus Funds (EIFF), a Mauritius-based foreign portfolio investor that the Sebi says is linked to Vinod Adani, brother of Gautam Adani.
