GQG investment in Adani stocks, PMI data propel rupee to a one-month high

On Thursday (March 2, 2023), marquee investor GQG Partners bought stake worth Rs 15,500 crore from the Adani promoters in four group companies (Adani Enterprises, Adani Ports, Adani Transmission & Adani Green).

During the trading session, the rupee touched a high of 81.92 and a low of 82.35 against the dollar.

The rupee also touched a one-month high on hot services PMI data, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

The Indian services sector expanded at the strongest rate in 12 years in February supported by favourable demand conditions and new business gains, a monthly survey said on Friday. The seasonally adjusted S&P Global India Services PMI Business Activity Index rose from 57.2 in January to 59.4 in February -- its highest level in 12 years.

"We expect the rupee to trade with a slight positive bias on improved global risk sentiments and fresh FII inflows. Weak crude oil prices may also support the domestic currency," Choudhary said.

However, any pullback in the US dollar amid rising expectations of the hawkish Federal Reserve and concerns over a slowdown in India's GDP growth rate may cap the upside and weigh on the rupee at higher levels, he added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.19 percent to 104.82.

On the domestic equity market front, the 30-share BSE Sensex advanced 899.62 points or 1.53 per cent to end at 59,808.97, while the broader NSE Nifty rose 272.45 points or 1.57 per cent to 17,594.35.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Thursday as they purchased shares worth Rs 12,770.81 crore, according to exchange data.