The Indian stock market closed the week on a strong note, with the rupee posting its biggest weekly gain in over two years and the Sensex inching closer to the 77000 mark. Positive global cues, strong foreign inflows, and a stable economic outlook contributed to this stellar performance.
Rupee posts strongest weekly gain
The rupee strengthened past 86 per US dollar this week, closing at 85.97 on Friday, marking a 40 paise jump from the previous session. This was the currency’s best weekly performance since July 2022, with a total gain of 1.2 percent over five trading days.
Analysts credit the rally to:
- Strong foreign investments in Indian stocks and bonds
- Rising forex reserves, boosted by RBI’s interventions
- Favourable global market trends and easing US rate hike fears
Market experts believe if inflows continue, the rupee could remain strong in the coming weeks.
Sensex and Nifty rally on investor optimism
The Sensex surged 557 points on Friday to close at 76906, marking a five-day winning streak. The Nifty 50 also saw a four percent rise over the week, its best weekly gain in over four years.
This rally was driven by:
- Heavy buying by foreign portfolio investors who pumped over 7470 crore into equities
- Strong domestic earnings reports boosting investor confidence
- Global index rebalancing, expected to bring in an additional 1.5 billion dollars in inflows
What’s next for the market
The rupee’s recent rally and the stock market surge reflect growing confidence in India’s economy. However, traders remain cautious, keeping an eye on:
- US Fed interest rate decisions
- Oil price fluctuations
- Upcoming corporate earnings reports
With strong fundamentals and continued foreign investments, India’s markets could see further gains in the near future.
