The shares of Hyundai Motor India, Jubilant Foodworks, Kalyan Jewellers India and Rail Vikas Nigam Limited (RVNL), meanwhile, will be excluded from the index and will likely see outflows worth $715 million, according to Nuvama.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Mumbai: Indian stocks slumped and the rupee plunged to a life-time low Thursday through a truncated workweek as surging oil prices, amid swirling rumours of fresh Pentagon strikes against Iran, stood in the way of brave long calls for risk assets.

Still, stocks advanced the most in April in 28 months after March had seen the biggest foreign fund exit in history. Broadest gauges fell up to 1.6% intraday before some short covering left them 0.8% lower at close.

The rupee, which breached 95 to the dollar to plummet to a historic low of 95.33, erased some of the losses to close at 94.90 after some backloaded interventions from the Reserve Bank of India (RBI) to prevent a rout, traders said.”The RBI stepped in as the rupee weakened, allowing the currency to trade in the 95.10/$ to 95.35/$ range for much of the session before coming in with heavy dollar sales in the final hour, helping it close at 94.90/$,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors. “The move suggests the central bank is keen to prevent the rupee from ending the day beyond the psychologically significant 95/$ mark.”

Stocks mimicked this pronounced weakness of the currency.

Sectoral Indices Down Too

The NSE Nifty 50 fell 0.7%, or 180.10 points, to close at 23,997.55, while the BSE Sensex declined 0.8%, or 582.86 points, to end at 76,913.50.

However, both indices climbed 7.5% and 7%, respectively in April- the highest monthly gains since December 2023 – after both gauges had retreated to multi-year lows in March.

Indian markets will remain shut on Friday on account of Maharashtra Day.

“There was some short covering that led the Nifty to erase some of the losses as traders didn’t want to take a risk on the short side ahead of the long weekend as oil prices are expected to be stretched and could see some cool-off if there is any positive announcement,” said Rajesh Palviya, Head of Research, Axis Securities.

If the state election results are in favour of the BJP, there could be a rally, he said.

Most sectoral indices ended lower apart from IT and pharma, which advanced marginally. Nifty Metal index dropped 2.1%. Nifty PSU Bank fell 1.7%. Nifty Realty and Consumer Durables moved around 1.5% lower each.

Caution Ahead
“The markets are not out of the woods yet given the long-term impact of the closure of Strait of Hormuz. However, some of the panic receded after the deep corrections witnessed recently,” said Sonam Srivastava, Founder and CEO, Wright Research.

Brent crude oil futures spiked to a four year high of $126 on Thursday, after reports suggested Trump received a briefing from the US Central Command on new plans for potential military action against Iran.

Asian markets remained weak. South Korea and Hong Kong fell 1.4% and 1.3% respectively. Japan and Taiwan declined around 1% each. China however, moved 0.1% higher.

India is not getting global attention compared to the performance of its emerging market peers like Japan and Taiwan due to lack of AI based opportunities and the concerns of inflationary pressure eroding earnings, she said.

BofA Securities bought 1.16 lakh shares in Kaynes Technologies on Thursday via a block deal worth Rs 42 crore. The sellers in the deal were Kadensa Master Fund and Bluepearl Map I LP. The shares were bought at a price of Rs 3,614.4 apiece, a 3% discount over Wednesday’s closing price of Rs 3,724.50.

BofA Securities bought these shares through its affiliate BofA Securities Europe SA. Sellers Kadensa and Bluepearl offloaded 46,934 and 69,148 shares, respectively.

Kaynes Technologies shares today ended with cuts of 0.70% or Rs 26.25 to settle at Rs 3,698.25 on the BSE.

Kaynes Technology India is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India. It offers capabilities across the entire spectrum of ESDM services. The company provides conceptual design, process engineering, integrated manufacturing and life cycle support for major players in the automotive, industrial, aerospace & defence and railways.

Kaynes Technologies share price performance

Kaynes Technologies has been a market laggard, sliding 14% over a one-year period, underperforming the benchmarks Nifty and the BSE Sensex, whose returns in the same period are approximately 5% and 3%, respectively.

The stock has been at the receiving end of investors’ ire, declining 48% in the last six months. In 2026, so far, it has slipped nearly 6%.

The stock is currently trading below its 50-day and 200-day simple moving averages (SMAs) of Rs 3,751 and Rs 5,473, respectively, according to Trendlyne data.

The company reported a 15% year-on-year consolidated net profit growth at Rs 77 crore in the December-ended quarter which is a 15.3% YoY growth. In the year ago period, its profit after tax (PAT) stood at Rs 67 crore. Meanwhile, the total revenue in the quarter under review stood at Rs 849 crore, up 24% versus Rs 686 crore in Q3FY25.

Also read: SBI block deal: BNP Paribas buys 5.28 lakh shares in a Rs 64 crore transaction

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Foreign institutional investors (FIIs) are creeping back into Indian stocks after a punishing $21 billion exodus but don’t break out the champagne just yet. The recovery hangs by a thread, with a make-or-break obstacle still blocking the path to a sustained comeback.

FIIs have turned net buyers of Indian equities in February, marking a tentative reversal after dumping $21 billion since late 2024—$19 billion in 2025 alone and another $2 billion so far in the calendar year. The turnaround follows a strengthening rupee and the announcement of an interim trade deal between India and the US, offering relief to investors who had fled amid currency depreciation fears.

Yet the rally remains perilously fragile. Earnings, the missing piece of India’s market recovery puzzle, continue to underwhelm, threatening to derail any sustained return of foreign capital.

“The trade deal certainly helped remove one of the overhangs for FIIs, as reflected in the recent uptick in foreign inflows and a firmer rupee,” said Amish Shah, Head of India Research at BofA Global Research. “However, it isn’t the only hurdle. Weaker rupee and muted Nifty earnings trajectory (likely in 1HCY26) remain headwinds for sustained FII inflows.”

Also read: Risk-on trade back? Smallcap stocks rally up to 28% in 2026, but market breadth stays weak

BofA expects Nifty to register just 7% earnings growth in FY26, with the weak momentum persisting into the fourth quarter. The firm anticipates earnings could accelerate to 13.5% in FY27, supported by improved loan growth, discretionary demand recovery aided by GST cuts, telecom tariff hikes, and stronger realisations for non-ferrous metals.

The trade deal’s timing proved crucial. India had incurred a trade deficit of $96 billion during April-December 2025, while facing the prospect of 50% tariffs on most merchandise exports to the US—its largest trading partner and source of an estimated $40 billion trade surplus.”FIIs started retreating from the Indian markets on the back of currency depreciation fears due to uncertainties associated with the India-US trade deal,” said Phanisekhar Ponangi, Co-Founder & Head of Investments at Mavenark Wealth. “The FIIs were naturally spooked due to growing tensions between India and the US, leading to record-high tariffs of 50% on most Indian merchandise exports.”

The threat was existential for foreign flows. With India’s trade surplus with the US at risk of shrinking significantly, strong downward pressure on the rupee loomed large.

“The prospects of the trade surplus with the US shrinking significantly were real, which would have led to strong downward pressure on the rupee,” Ponangi said. “The Q3 earnings, on the other hand, weren’t adequately strong to drive earnings and stock prices high enough to offset the losses incurred due to currency depreciation. In this backdrop, the announcement of the broad contours of the India-US trade framework has come at an opportune time for the markets.”

But Ponangi tempered expectations for a full-blown FII return. “While the FIIs may not allocate more to India merely on the back of the trade deal framework, we may see a material reduction in FII outflows in the near term owing to lesser nervousness on the currency front.”

Still, some market watchers see reasons for optimism beyond the immediate relief.

“Sustained FII selling, which has been a major drag on the market, has stopped,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “FIIs have been buyers in the market in last few trading sessions. This cannot be taken as a complete reversal of the FII stance but the sustained selling appears to be over.”

Vijayakumar pointed to the dollar’s roughly 10% depreciation over the past year as a potential catalyst for FII rotation. The currency move has significantly eroded dollar gains from US market investments, potentially nudging foreign investors to seek returns elsewhere.

“So FIIs might look for markets outside the US for gains this year and beyond,” he said. “The rupee stability and hope of appreciation in the months ahead also can nudge FIIs to turn buyers in India.”

Shah at BofA outlined several factors that could turn the equation favorable in the second half of 2026: potential Federal Reserve rate cuts that typically trigger emerging market inflows, improving earnings momentum, continued government reforms, potential fiscal stimulus if budgetary estimates see upsides, and clarity on Pay Commission hike quantum.

For now, the nascent rally has brought broader market participation, with mid and small caps rallying alongside large caps, bringing cheer to retail portfolios that had suffered through months of foreign selling pressure.

But until earnings pick up steam, foreign investors are likely to remain cautious buyers rather than committed believers in India’s equity story.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Hello and welcome to ET Market Watch. I’m Neha Vashishth.

Indian equity markets closed lower on Wednesday, extending recent losses as global trade concerns and continued foreign investor outflows weighed on sentiment.

The Sensex slipped 245 points to close at 83,382, while the Nifty 50 fell below 25,700, ending at 25,665.
This marks the seventh decline in the last eight sessions, highlighting persistent nervousness in the markets.

Investor caution, driven by worries over potential US tariffs and uncertainty surrounding the India–US trade deal, kept foreign institutional investors risk-averse.

On the downside, IT and FMCG stocks dragged the indices.
Heavyweights such as TCS, Asian Paints, Maruti Suzuki, Sun Pharma and Hindustan Unilever fell between 1.5 and 2%.
TCS dropped over 2%, while HDFC Bank slipped 1.3%, limiting any recovery in the benchmarks.
Tata Elxsi also slid 5% after reporting a decline in quarterly profit.

There were, however, some clear pockets of strength.

PSU banks outperformed, with the PSU Bank index rising over 2% after strong earnings.
Union Bank of India surged nearly 8%, while Indian Overseas Bank gained over 2% on improved profitability.

Metals also found support, tracking higher global prices amid expectations of U.S. rate cuts and safe-haven demand.

Globally, cues were mixed.
Asian markets touched fresh highs, led by Japan, while US futures edged lower and European markets signaled a muted start.
Gold and silver surged to record highs, while crude oil prices remained largely flat.

Meanwhile, the rupee weakened slightly, ending at 90.29 against the dollar, pressured by foreign fund outflows and firm oil prices.

Looking ahead, investor focus now shifts to Q3 earnings, especially results from IT and banking companies.

That’s all for today on ET Market Watch.
I’m Neha Vashishth, thanks for listening.

This is Neha Vashishth, and you’re listening to ET Market Watch. Let’s hear the top market highlights.

Indian equity markets staged a dramatic intraday comeback on Monday, snapping a nervy start as fresh signals from Washington soothed trade worries.

The Sensex, which was down over 700 points in early trade, erased all losses within an hour and ended the session up 302 points at 83,878.
The Nifty 50 reclaimed the 25,500 mark, closing 107 points higher at 25,790.

So, what changed?

The turnaround came after newly appointed US Ambassador to India Sergio Gor struck a conciliatory tone on India–US trade ties, easing fears triggered by tariff threats and weeks of relentless selling.

Calling the relationship a “genuine friendship,” Gor said real friends can disagree and resolve differences. He confirmed that India and the US are actively engaged in trade talks, with the next round expected as early as January 13.

That reassurance flipped market sentiment decisively.

Adding further momentum was Gor’s announcement that India will be invited to join PaxSilica, a US-led strategic initiative focused on building a secure global silicon and semiconductor supply chain — spanning critical minerals, semiconductors, AI, and advanced manufacturing.

Markets took that as a strong geopolitical and strategic positive. The rally was broad-based.

Bank Nifty jumped over 1% from the day’s low, midcaps and smallcaps pared losses, and export-oriented stocks rebounded sharply, after earlier fears of tariffs as high as 500%.

Today’s bounce also had support from value buying, after markets fell for five straight sessions last week, with the Sensex down over 2,100 points and sentiment extremely fragile.

Monday’s sharp reversal shows just how headline-sensitive markets remain and how quickly confidence can return when trade risks ease.

That’s ET Market Watch for today.

Hello and welcome to ET Markets Watch, I’m Neha Vashishth.
Indian markets ended the week on a shaky note, with selling pressure deepening for the fifth straight session.

The Sensex slipped over 600 points, while the Nifty closed below 25,700, as global trade jitters and political uncertainty out of Washington kept investors firmly on the defensive.

Over the past five sessions, the Sensex has shed more than 2,350 points, wiping out nearly ₹8 lakh crore in investor wealth.

The biggest overhang remains Trump’s tariff threat. Markets are on edge ahead of the US Supreme Court verdict on the legality of Trump-era tariffs — a ruling that could reshape global trade flows. If tariffs are struck down, India, one of the worst-hit markets, could see relief-led buying.

Adding to the pressure is persistent FII selling, with foreign investors pulling out over ₹3,300 crore in the latest session.

Global cues remained mixed, crude prices climbed near two-week highs, and technically, benchmarks have broken key support levels, reinforcing bearish momentum.

That said, experts believe quality stocks in financials, consumption and industrials may offer long-term opportunities amid the correction.

That’s your quick market wrap.
Stay tuned to ET Markets Watch for all the big cues that matter.

Indian equities ended flat on Tuesday, as a pullback in IT stocks snapped a two-session rally and investors stayed cautious heading into the year-end.

The Sensex slipped 42 points to close at 85,524, while the Nifty 50 edged up just 5 points to 26,177.

Losses were led by Infosys, Tech Mahindra, Bharti Airtel, Adani Ports and Sun Pharma, while ITC, HDFC Bank, NTPC, Tata Steel and UltraTech Cement offered some support.

Broader markets were mixed, smallcaps gained around 0.4%, while midcaps finished largely unchanged.

The IT index fell nearly 1%, retreating after a strong four-session rally, even as the rupee hovered near record lows and expectations of U.S. rate cuts in 2026 stayed supportive.

Among stocks in focus, Ambuja Cements rose over 1% after approving the merger of ACC and Orient Cement, a move expected to deliver around 10% value accretion for shareholders.

Market experts say investors are now positioning ahead of the earnings season, while tracking Fed policy signals, global trade risks and rupee movement.

Globally, equities traded near record highs, gold and silver hit fresh peaks, oil prices stayed steady, and the rupee strengthened slightly to 89.65 per dollar.

That’s your ET Market Watch. Stay tuned for more market updates.

Hello and welcome to ET Market Watch. I’m Neha Vashishth, and here’s how markets wrapped up on Monday.
Indian equities extended their rebound for a second straight session. Benchmark indices closed firmly higher as a stronger rupee, renewed foreign inflows and supportive global cues lifted investor sentiment.

The Sensex jumped 638 points, or 0.75%, to settle at 85,567, while the Nifty 50 gained 206 points, ending the day at 26,172. Over the last two sessions, the Sensex has added nearly 1,100 points, signaling a clear revival in risk appetite after last week’s volatility.

So, what drove today’s rally?

First, the rupee bounce.
The Indian rupee strengthened sharply in early trade, rising 22 paise to 89.45 against the dollar, helped by renewed foreign inflows and firm intervention by the Reserve Bank of India. This comes after the currency had briefly slipped past the 91-per-dollar mark earlier this month. The rupee’s recovery has eased pressure on equities, especially import-heavy sectors.

Second, FIIs are back in buying mode.
Foreign institutional investors have now turned net buyers for three consecutive sessions. On Friday alone, FIIs bought shares worth over Rs 1,800 crore, while domestic institutions added a strong Rs 5,700 crore, reflecting broad-based institutional support.

According to Dr. VK Vijayakumar of Geojit Investments, the sharp reversal in the rupee and FIIs turning buyers are mutually reinforcing trends that could trigger short covering and push markets higher. However, he cautions that rich valuations may cap the upside, even as earnings growth prospects remain supportive.

Third, global cues remained favourable.
Indian markets tracked gains across Asia, following a technology-led rally on Wall Street. S&P 500 and Nasdaq futures edged higher, while Asian markets also advanced, Japan’s Nikkei jumped 1.5%, and South Korean stocks surged nearly 2%, driven by optimism around AI-linked earnings.

And finally, technical signals are turning constructive.
From a chart perspective, analysts say the Nifty appears to be stabilising after weeks of decline. Anand James of Geojit notes that the index is holding above recent lows, opening the door for a possible move toward 26,300. However, a slip below 25,980 could lead to consolidation, while a break under 25,650 may signal deeper downside.

Bottom line:
A stronger rupee, returning foreign flows and supportive global trends have given markets fresh momentum but valuations remain a key watchpoint.

That’s all for now.
You’re listening to ET Market Watch. I’m Neha Vashishth. Stay tuned.

Indian equities ended lower on Tuesday, with the Sensex and Nifty extending their decline for a second straight session, as persistent foreign portfolio outflows and a weakening rupee kept investors on edge. Lingering uncertainty over a potential U.S. trade deal added to the cautious mood on Dalal Street.

The S&P BSE Sensex fell 533 points, or 0.63%, to close at 84,679.86, while the NSE Nifty 50 declined 167 points, or 0.64%, settling at 25,860.10.

Among the Sensex’s 30 constituents, Axis Bank, Eternal, HCL Technologies, Tata Steel and Bajaj Finserv led the declines, with losses ranging from 2% to 5%.

Axis Bank slid 5% after brokerage Citi warned that pressure on net interest margins could persist into the December quarter. The stock was the single largest drag on the Nifty, pulling financials lower by 0.8% and private-sector banks down 1.2%.

Broader markets also weakened, with the midcap and smallcap indices falling 0.8% and 0.9%, respectively.

Expert views

The continued INR weakness to fresh record lows, driven by persistent FII outflows and subdued global sentiments, dragged domestic markets into negative territory, said Vinod Nair, Head of Research at Geojit Investments, adding that smallcaps and midcaps lagged large caps, with IT, metals, banking, and realty leading losses, while consumption stocks offered limited support.

“Volatility is expected to remain elevated amid currency fluctuations and uncertainty over foreign inflows. Progress on the US–India trade deal and rupee stabilisation will be critical, while softer commodity prices and improving earnings visibility provide a constructive medium-term backdrop,” said Nair.

Global Markets

Asian markets retreated on Tuesday while the dollar hovered near two-month lows, as investors grew more cautious ahead of a busy run of U.S. economic data, including the closely watched jobs report, that could shape expectations for Federal Reserve policy in the year ahead.

The risk-off tone weighed across asset classes. Bitcoin slipped 0.3% to $86,017.67 after touching a two-week low in the prior session. U.S. Nasdaq futures fell 0.8%, while European equity futures were down 0.5%.

Technology shares led declines across Asia. South Korea’s Kospi dropped 1.8%, Taiwan’s benchmark index fell 0.8%, and Hong Kong’s Hang Seng Tech Index slid 2.7%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.45%, touching its lowest level in three weeks.

Gold prices eased about 0.6% to $4,275.41 an ounce, slipping back from the eight-week highs reached late last week.

Crude impact

Oil prices extended their decline on Tuesday, as signs of progress toward a potential Russia-Ukraine peace deal fueled expectations that sanctions could eventually be eased, adding to concerns about future supply.

Brent crude futures fell 89 cents, or about 1.5%, to $59.67 a barrel by 0942 GMT. U.S. West Texas Intermediate crude slid 92 cents, or 1.6%, to $55.90 a barrel. Both benchmarks were trading near their lowest levels since May.

Rupee vs Dollar

The Indian rupee slid to a record low on Tuesday, as fragile risk sentiment compounded pressure from sustained hedging demand and foreign portfolio outflows, with uncertainty over a potential U.S. trade deal continuing to weigh on the currency.

The rupee weakened to 91.0750 per dollar before closing 0.3% lower at 91.0275. The currency has fallen more than 6% against the U.S. dollar so far this year, placing it among the worst-performing emerging-market currencies in 2025.

The dollar index, which tracks the greenback against a basket of six major peers, was last at 98.20, slightly lower after earlier hovering near its weakest level since Oct. 17.

(with inputs from agencies)