Rupee edges lower against dollar on weak shares

The rupee shed its early gains and was trading at 61.22 versus its close of 61.13/14. The rupee rose to 61.06 against dollar in early trade on Tuesday.

The S&P BSE Sensex started on a cautious note in opening trade on Tuesday, after hitting record high in its previous session as traders rushed in to book profits after recent rally.

Tracking the momentum, the 50-share Nifty index also slipped below its crucial psychological level of 6,350 in trade today.

Foreign funds bought Indian cash shares and derivatives worth $1 billion on Monday when shares rose to a record high after the main opposition party, widely seen by investors as being more business friendly, swept recent state elections.

Foreign investors were buyers of Rs 2,473 crore ($404.73 million) in Indian equities on Monday, their biggest single day buying since September 19, regulatory and exchange data show.

Overseas investors also bought Indian equity derivatives worth Rs 3,737 crore on Monday, exchange data shows.