Home / Business and Economy / Rupee Plummets, Markets Waver Amidst Forex Volatility
Rupee Plummets, Markets Waver Amidst Forex Volatility
17 Dec, 2025
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.
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.
Looking ahead, technical analysts expressed caution, noting that the Nifty remained below key moving averages, suggesting a bearish short-term trend. Support levels were identified around 25,700-25,650, with a break below potentially triggering further corrections. Resistance was expected in the 25,950-26,000 zone, indicating a period of anticipated continued volatility for the Indian markets.
