MARKET UPDATES: The Indian rupee gained 10 paise to 81.72 against the US. dollar in early trade today,  May 2, tracking a weak USD and a strong trend in Indian equities. Significant inflows of foreign funds, together with crude oil prices below USD 80 per barrel, strengthened the local currency, Forex traders said 

The local unit started out at 81.75 against the dollar on the interbank foreign exchange but later increased to 81.72, showing an increase of 10 paise over its previous closing. The rupee's closing price on April 28 was 81.82 against the dollar.

Forex and Indian  stock markets were closed on May 1 on account of 'Maharashtra Day'.

The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased 0.12% to 102.03. The benchmark for world oil, Brent crude futures, increased 0.15% to USD 79.43 a barrel.

Forex traders said that investors are awaiting clues from the crucial FOMC meeting that will start later in the day in the United States. The market is currently anticipating the Federal Open Market Committee's (FOMC) decision on May 3.

Markets are speculating as to whether this boost marks the end of the season or if a surprise is still in store. "A 25bps hike with a cautiously hawkish tone amid resilient economic data shall again pump the dollar above 103 levels," said CR Forex Advisors MD Amit Pabari.

The 30-share BSE Sensex rose 336.5 points or 0.55% to 61,448.94 on the local equities market. The NSE Nifty index as a whole increased 96.50 points or 0.53% to 18,161.50.

According to exchange data, foreign institutional investors (FIIs) were net purchasers on the capital market on April 28 as they bought shares worth 3,304.32 crore.

Bullish emotions are being aided by record GST receipts and a manufacturing PMI that is at a four-month high. According to figures from the finance ministry issued on May 1, the GST collection in April increased by 12% yearly to over 1.87 lakh crore, reaching an all-time monthly high.

India's manufacturing sector continued to pick up speed and reached a four-month high in April. The S&P Global India Manufacturing Purchasing Managers' Index (PMI), which is seasonally adjusted, increased from 56.4 in March to 57.2 in April.

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