Key indices on Monday opened on a positive note. The benchmark BSE Sensex opened at 36,501.05 while the NSE Nifty50 was at 11,019.85. Surprisingly, despite reporting a net profit of Rs 2,121 crore from Rs 2,077 crore a year earlier, Wipro was the top loser on both the indices as it lost 5 per cent. HDFC Bank was also in red, down by 2 per cent on both Sensex and Nifty.
Asian shares dipped on Monday on fears of more protectionist measures from the United States while the dollar declined against major currencies after US President Donald Trump criticised the Federal Reserve's tightening policy.
Trump, on Friday, lamented the recent strength of the US dollar and accused the European Union and China of manipulating their currencies.
The dollar index is so far up 2.4 per cent this year led largely by Fed rate rises, strong macro-economic data and nervousness about a full-blown tariff war. It was last down 0.2 per cent at 94.27, the lowest in more than two weeks.
Trump's remarks on Friday, coupled with new threats to slap duties on all US imports from China, triggered sell-offs in Wall Street and European stocks on Friday, despite good corporate earnings.
Asian stocks took Wall Street's cue on Monday with MSCI's broadest index of Asia-Pacific shares outside Japan falling 0.2 per cent. Japan's Nikkei stumbled 1.4 per cent, Australian shares and South Korea's KOSPI index fell 0.9 per cent each.
Meanwhile, the rupee surged by 19 paise to 68.65 against the US currency in early trade at the Interbank Foreign Exchange today as the dollar weakened globally, amid foreign fund inflows.
Increased selling of the American currency by exporters and banks amid a higher opening in the domestic equity market lifted the domestic currency, dealers said.
The dollar extended losses against world currencies overseas after US President Donald Trump doubled down on his criticism of global monetary policy and the Federal Reserve last week.
Further, a higher opening in the domestic equity market boosted the rupee, they added.
(With inputs from agencies)
