Why did the Indian rupee hit a record low against the US dollar?

The rupee hit a record low due to sharp intraday reversal, foreign outflows, and uncertainty over trade deals.

What was the impact of rupee volatility on the Indian stock market?

Rupee volatility weighed on investor sentiment, contributing to a marginal decline in the BSE Sensex and NSE Nifty.

What are the expected support and resistance levels for Nifty?

Key support for Nifty is seen around 25,700-25,650, with resistance expected near 25,950-26,000.

Home / Business and Economy / Rupee Plummets, Markets Waver Amidst Forex Volatility

Rupee Plummets, Markets Waver Amidst Forex Volatility

17 Dec

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Summary

Indian markets closed lower, influenced by a sharp rupee fall from record lows.
The rupee experienced wild swings, trading near 91 before a brief recovery.
Analysts anticipate continued volatility for the rupee and markets.

Rupee Plummets, Markets Waver Amidst Forex Volatility

Indian equity markets concluded Tuesday with minor losses, predominantly influenced by the rupee's sharp intraday reversal after hitting a record low. The benchmark Sensex fell 120.21 points, closing at 84,559.65, while the Nifty shed 41.55 points to settle at 25,818.55. The currency's volatility was a central theme, with the rupee trading near 91 before a temporary recovery, attributed by analysts to potential intervention.

Despite some intraday strengthening, the rupee's sustainability remained uncertain amid ongoing foreign institutional investor (FII) selling and pending clarity on India-US trade deals. Sectoral performance was mixed, with Nifty PSU Bank gaining but Nifty Media, Realty, and FMCG showing weakness. Midcap and smallcap indices also registered declines, reflecting broader market caution and selling pressure at higher levels.