Dollar closed at 64.7400 against its opening at 64.7500.Dollar ends flat as it opened over three-week low tracking the weakness in the greenback after dismal US inflation prints amid likely overseas funds inflow into local stocks and debt. However demand from oil importers and banks including Bank of Baroda and JP Morgan Chase capped the fall in the spot pair, dealers added. The greenback remained subdued as investors sentiments got hit with a deluge of economic reports. Meanwhile, the local stocks opened higher on hopes of robust quarterly earnings amid positive global markets. Further, Arun Jaitley, the Finance Minister, refuting talks of the government announcing a fiscal stimulus package to boost economy, should help align slowdown fears. Also, investor's sentiments received a boost after India's trade deficit narrowed to 7-month low of $8.98 billion in September. Also, the holiday truncated week ahead of Diwali - the festival of lights, is expected to provide impetus for market participation. The local debt opened higher after Finance Minister Arun Jaitley refuted that he made any comments on fiscal stimulus amid moderation in US Treasury yields.

 

Sensex provisionally ends 200.95 points higher at 32,633.64 points with 24 components in green.

INTERNATIONAL

 

Asian shares gained with investors shrugging of reports of clashes between Iraqi government troops and Kurdish regional Government paramilitary forces in the Kirkuk region that could turn into a wider regional conflict as Turkey and Iran also oppose any move to independence by the Kurds in Iraq.

 

Oil markets jumped on concerns over potential renewed U.S. sanctions against Iran as well as conflict in Iraq, while an explosion at a U.S. oil rig and reduced exploration activity supported prices there.

 

China's economy is expected to grow 7 percent in the second half of this year, the central bank governor said, accelerating from the first six months and defying widespread expectations for a slowdown.

 

Gold prices edged up in Asia with tension in the Middle East supporting risk demand as Baghdad moved troops into the oil-rich Kirkuk region where the Kurdish Regional Government has a stronghold and has mulled a push for independence opposed by Iraq, Iran and Turkey.

 

Aussie fell further in Asia with China reporting faster than expected producer price gains, showing inflation pressures are building in the economy which is a key export destination for Australia.