Mumbai: The Indian rupee depreciated by 26 paise to 83.40 against the US dollar in early trade on Tuesday, influenced by initial trends from the Lok Sabha elections indicating a mixed outcome.
Forex traders noted that a weak sentiment prevailed in the domestic equity markets during early trading hours.
As per reports from television sources, the BJP-led NDA surged ahead with leads in over 200 parliamentary seats out of 350 where trends were available, while the opposition INDIA bloc led in 120 seats.
Vote counting for the Lok Sabha elections commenced on Tuesday morning across various states and Union Territories.
In the interbank foreign exchange market, the rupee opened weaker at 83.25 and extended losses to reach 83.40 against the US dollar in initial transactions, marking a decline of 26 paise from its previous close.
On Monday, the rupee had settled at 83.14 against the US dollar.
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, was marginally down by 0.05 percent, trading at 104.02.
Brent crude futures, the global benchmark for oil, declined by 0.61 percent to USD 77.88 per barrel.
In the domestic stock market, benchmark indices Sensex and Nifty experienced early losses as initial trends from the Lok Sabha polls reflected a mixed pattern. The 30-share index dropped by 1,715.78 points to 74,753, while the NSE Nifty fell by 539.1 points to 22,724.80 in early trade.
Foreign institutional investors (FIIs) were net buyers in the Indian equity market on Monday, purchasing shares worth Rs 6,850.76 crore on a net basis. FIIs bought shares valued at Rs 23,451.26 crore and sold equities amounting to Rs 16,600.50 crore in the cash segment.
