MUMBAI: India's benchmark indices slipped in early trade on Monday, the first full session after the Diwali Muhurat sitting, while the rupee strengthened. The BSE Sensex fell 93.95 points to 80,919.19 and the NSE Nifty dipped 30 points to 24,968.80 in early trading, the Press Trust of India (PTI) reported.

Source: PTI via The Sen Times

The rupee appreciated 24 paise to 93.74 against the US dollar in early trade, supported by lower crude prices, improving foreign flows and hopes of de-escalation in the Middle East, forex traders said. In the interbank foreign exchange market, the rupee opened at around 93.85 and then gained ground to touch 93.74, up 24 paise from its previous session's closing level. On Friday, the rupee had surged 43 paise to close at 93.98 against the dollar.

Source: PTI via The Sen Times

The early weakness came even though pre-market cues had pointed the other way. GIFT Nifty was trading higher before the open, but the benchmarks quickly reversed as traders assessed developments in the US-Iran talks, according to DSIJ's opening-bell report, which recorded the Nifty slipping below the 25,000 mark in early deals.

Source: DSIJ Opening Bell

Helping the currency, foreign institutional investors purchased equities worth Rs 13,749.82 crore on Friday, according to exchange data cited by PTI. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.12 per cent lower at 102.18, while Brent crude, the global oil benchmark, was trading 0.15 per cent lower at $98.17 per barrel in futures trade. India's forex reserves dropped by $2.691 billion to $717.056 billion during the week ended October 30, the Reserve Bank of India said on Friday.

Source: PTI via The Sen Times

“The improvement in diplomatic expectations is already reflecting in energy prices. Brent crude, which had climbed to around $117.64, has now slipped below $100 and is trading near $98. For currency markets, even the possibility of a lasting agreement is important,” CR Forex Advisors managing director Amit Pabari said. With USD/INR breaking below the 94.00 mark, Pabari said the probability of further rupee appreciation towards 93.50 and 93.00 had increased, while 94.40–94.50 was likely to act as the immediate resistance zone.

Source: PTI via The Sen Times

Monday's early slip followed Sunday's special Diwali session, in which both benchmarks closed in the red for the first time in nine years as the new Samvat 2083 year began. Read: Sensex, Nifty end Muhurat trading lower