Markets Daily India

Rupee Emerges as Achilles Heel for India Stock Bulls

Recent currency gains likely to be temporary unless external pressure eases.

A customer counts 100 rupee banknotes after withdrawing them from an ATM in New Delhi, India, on Monday, Feb. 3, 2025. The Indian rupee is expected to weaken further against the dollar, after hitting a new low Monday, as traders bet on interest-rate cuts amid signs the central bank is loosening its grip on the currency under its new chief.Photographer: Prakash Singh/Bloomberg

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By Pratigya Vajpayee and Savio Shetty

March 27, 2026 at 2:47 AM UTC

This article is for subscribers only.

Good morning...

I’m Savio Shetty, bringing your daily markets update as we wrap up another week dominated by war-related headlines.

Investors have little to cheer as markets reopen after Thursday’s public holiday. Asian stocks are down for a second straight day, tracking a selloff on Wall Street, as the Iran war continues to weigh on sentiment. Brent is trading higher than Wednesday’s close and Goldman Sachs has downgraded Indian stocks to market-weight from overweight, just days after a similar move by UBS Global Wealth. All of this suggests the upbeat mood in local markets before the holiday — the Nifty surged nearly 4% over two sessions through Wednesday — is unlikely to last. Focus will be on whether the Nifty can hold on to the gains seen earlier in the week and stay above the 23,000 mark — a key level seen as crucial to sustaining the recent recovery.

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