Indian Rupee Finished The Day at 90.4150

The Indian rupee closed at 90.4150 on Friday in comparison to its previous closing at 90.3575 on Thursday. Despite India's robust macroeconomic performance, with GDP growth accelerating to a six-quarter high of 8.2% in Q2FY26 and retail inflation dropping to multi-year lows (often below RBI’s 4% target and even touching 3.61% early in 2025), the Indian rupee has continued its sharp decline, breaching the psychological 90 level on December 3, 2025 and hitting a fresh record low of 90.5625 against the US dollar by December 12. The primary drivers of this depreciation are external rather than domestic: persistent global dollar strength, elevated US bond yields, sustained foreign portfolio investor (FPI) outflows from Indian equities, a widening trade deficit, and heightened uncertainty surrounding delayed India–US trade negotiations and recently imposed US tariffs on Indian goods, which have spiked dollar demand. Experts note that while a weaker rupee does not fully offset the damage from tariffs, it acts as a natural shock absorber by making Indian exports more price-competitive and providing some cushion to the external sector at a time when domestic inflation is comfortably low and crude oil prices remain benign, limiting the usual pass-through of imported inflation; nevertheless, the combination of these global and trade-related pressures has overwhelmed India’s otherwise strong fundamental story, accelerating the rupee’s fall to its fastest pace in years.

At close, The Nifty 50 rose 0.57% to 26,046.95, while the BSE Sensex added 0.53% to 85,267.66, after gaining about 0.5% on Thursday.

Indian equity markets closed firmly in the green, snapping a three-day losing streak, with the BSE Sensex rising 450 points (0.53%) to 85,267.66 and the Nifty 50 gaining 0.57% to settle near 26,050. Metal and realty sectors led the rally (metal index +2.6%), driven by optimism over China’s pledged fiscal stimulus for 2026 and a weaker US dollar post the Federal Reserve’s rate cut. Key gainers included Hindustan Zinc, Hindustan Copper, Vedanta, L&T, Tata Steel, and realty plays like Anant Raj (+9.5%). Midcap and smallcap indices rose 1.1% and 0.65% respectively. Notable corporate developments: JSW Energy to raise up to ?10,000 crore via QIP, Vedanta won a critical mineral block, IOC declared ?5/share interim dividend, Honasa Consumer acquired 95% in men’s grooming brand Reginald Men, Rama Steel Tubes to buy UAE-based Automech Group, and Thermax was upgraded to “buy” by Kotak. Despite the day’s gains, both indices posted a 0.5% weekly decline amid profit-booking near record highs, persistent FII outflows, and a rupee hitting a fresh lifetime low of 90.55 against the dollar. Broader sentiment remains cautiously optimistic, with brokerages like Jefferies forecasting a stronger 2026 on expected earnings recovery and sustained domestic flows.