Rupee Weakens While Nifty 50 Holds Marginal Gains

The Indian rupee ended lower against the US dollar, depreciating by 0.27 percent to close at 85.2625 per dollar, compared to its previous close of 85.03. The decline comes amid global currency fluctuations and investor sentiment influenced by geopolitical developments and crude oil price trends.  

 

Despite the rupee’s weakness, India’s Nifty 50 index managed to hold marginal gains, provisionally ending 0.15 points higher. Market analysts attribute the stability in equities to strong performances in IT and oil & gas stocks, which helped offset broader concerns over currency depreciation.  

 

The rupee’s movement was impacted by heightened demand for the dollar from importers and foreign institutional investors adjusting their portfolios. Meanwhile, crude oil prices remained elevated, adding pressure on India’s trade balance and influencing forex market trends.  

 

Banking stocks led the charge in equity markets, with HDFC Bank and Axis Bank showing resilience. Midcap and smallcap indices also posted gains, reflecting broader market strength despite currency fluctuations.  

 

Financial insights:  

 

- Indian rupee depreciates by 0.27 percent, closing at 85.2625 per US dollar  

- Nifty 50 index ends 0.15 points higher, supported by IT and oil & gas stocks  

- Currency movement influenced by global trade dynamics and crude oil prices  

- Banking stocks and midcap indices show resilience amid market volatility  

- Analysts monitor forex trends and equity performance for future market direction  

 

Sources: Business Standard, Economic Times, Moneycontrol, MarketScreener