Rupee Weakness And Foreign Outflows Drag Markets Lower At Open

Indian equities began Thursday’s session on the back foot, as worries over a sliding rupee and ongoing foreign fund withdrawals dampened sentiment on Dalal Street.

The cautious start also aligned with the weekly derivatives expiry for the Sensex, prompting traders to tread carefully.

Early deals saw the rupee touch a new lifetime low of 90.56 against the US dollar, intensifying fears around accelerating capital flight.

The prolonged decline has been attributed to persistent selling by overseas investors, strong dollar demand, and continued ambiguity over India–US trade discussions.

Reflecting the cautious mood, the Sensex opened at 84,958, down 148 points or 0.17 per cent, as the Nifty began 33 points or 0.13 per cent lower at 25,953.

Heavyweights largely traded in negative territory during the initial hour.

Key names such as HUL, Titan, Eternal, ICICI Bank, Power Grid, Trent, Ultratech Cement, Bajaj Finserv, Tata Motors PV, NTPC, Bajaj Finance and HDFC Bank were among the weak performers.

Only a select group of large caps managed to buck the trend. Technology giants TCS, HCL Tech, Infosys and Tech Mahindra led the advancers, benefiting from the strengthening US dollar.

Asian Paints and Bharti Airtel also posted modest upticks.

Broader indices showed a mixed picture. The Nifty MidCap index inched higher by 0.17 per cent, but the Nifty SmallCap index eased 0.07 per cent.

Analysts say the recent pullback in equities reflects the rupee’s rapid slide.

With the currency now beyond 90 per dollar, worries have intensified over imported inflation and rising costs for firms reliant on global inputs.

Experts expect choppiness to continue through the session, given the unsettled global backdrop and strain on the domestic currency.

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