Equity Markets Falter as Rupee Hits New Lows and Oil Prices Surge

The domestic equity markets faced pressure on the week's final trading day as investor sentiment took a hit following the Indian rupee's plunge to a historic low of 96 against the US dollar. This development comes amid ongoing global uncertainty and escalating crude oil prices, impacting the financial landscape.

The benchmark Nifty 50 index concluded the session at 23,643.50, witnessing a decrease of 46.10 points or 0.19 percent. Meanwhile, the BSE Sensex ended at 75,237.99, down by 160.73 points or 0.21 percent. Investor caution escalated due to the recent market rally's dampening effect, fueled by rising inflation concerns and global bond yields.

Vinod Nair, Head of Research at Geojit Investments Limited, highlighted the urgency for fiscal and monetary interventions to stabilize the rupee and balance of payments. In global markets, rising yields have stalled the AI-led rally, with geopolitical developments like the reopening of the Strait of Hormuz under the spotlight. Meanwhile, sectoral indices show mixed outcomes, with Nifty Metal, Realty, and PSU Bank declining, while Nifty IT, Media, and Healthcare sectors ended in positive territory.

(With inputs from agencies.)