Investors remained cautious ahead of mid-term review of foreign trade policy due later today and RBI policy tomorrow.

The rupee strengthened by 12 paise to 64.25 against the dollar at the interbank forex market today on increased selling of the American currency by banks and exporters.

The dollar losing sheen against some other currencies overseas also supported the local unit, traders said.

Yesterday, the rupee had rebounded by 9 paise to end at 64.37 against the US dollar in a highly volatile trade on fresh selling of the greenback and also emboldened by encouraging Q2 GDP numbers and monthly manufacturing data.

9:40 am Market Check: Benchmark indices extended losses in morning ahead of major events – RBI policy meet tomorrow, mid-term review of foreign trade policy due later today and Gujarat elections on Saturday.

The BSE Sensex opened lower on Tuesday against the previous session’s closing. The broader NSE’s Nifty, too, fell in the morning hours. The Indian rupee opened strengthened against the US dollar. Traders are cautious as the Reserve Bank of India’s (RBI) monetary policy panel starts its two day meeting on Tuesday. Most of the analysts polled by Mint expect the central bank to keep interest rates on hold for a prolonged period starting with its policy meeting on concerns of rising inflation. All 15 economists surveyed expect the central bank’s monetary policy committee (MPC) to keep the key repo rate unchanged at 6% when it announces its decision on Wednesday. The shares of Bharti Airtel, Tata Motors and M&M rose, whereas the shares of NTPC and Wipro fell. Here are the latest updates from the markets

9.37 am IST
Market update
BSE Sensex plunged 163.26 points, or 0.50%, to 32,706.46, while the Nifty 50 fell 37 points, or 0.37%, to 10,090.75.

9.35 am IST
Reliance group shares fall
Anil Dhirubhai Ambani companies fell further. Reliance Communications Ltd fell 6%, Reliance Naval and Engineering Ltd declined 2.11%, Reliance Capital 0.5%, Reliance Infrastructure Ltd 1%.

source: moneycontrol.com