A historic slide in the rupee and surging crude oil prices overshadowed a brief midday rally on Dalal Street Friday, as Indian equity markets ended in the red for a second straight session amid a cocktail of geopolitical tension, imported inflation fears, and relentless foreign selling.
Rupee weakness and crude oil surge weigh on markets
“The sharp fall in the Indian rupee is mainly being driven by a mix of global uncertainty and rising crude oil prices,” said Dr Ravi Singh, Chief Research Officer at Master Capital Services. “...sustained currency weakness can keep volatility elevated and may slow foreign investor participation in the near term.”
The Nifty 50 settled at 23,643.50, down 46.10 points or 0.19 per cent, after touching an intraday high of 23,839.30 before heavy selling dragged it lower. The BSE Sensex declined 160.73 points or 0.21 per cent to close at 75,237.99. Broader markets fared worse — the Nifty Midcap 100 fell 0.45 per cent and the Smallcap 100 declined 0.61 per cent, reflecting widespread caution. On a weekly basis, the Nifty lost 2.10 per cent while the Sensex shed over 2,000 points.
The rupee breached the 96 mark against the US dollar for the first time in history, touching a record low of 96.06 — a development that rattled investor confidence on multiple fronts. Brent crude oil remained firm above $106 a barrel, while domestic crude futures surged nearly 4 per cent, trading above ₹10,000. The government’s decision to hike retail petrol and diesel prices by approximately ₹3 per litre — the first such revision in nearly four years — further stoked inflation fears and weighed on crude-sensitive sectors like aviation, paints, and logistics.
