The domestic stock market opened on a positive note on Friday, December 27, marking the beginning of the January series for Nifty. After a volatile period in the last three series, the market surged today. The Sensex gained 135 points, opening at 78,607, while the Nifty rose by 51 points to 23,801, and the Bank Nifty increased by 198 points to 51,268. However, the rupee continued its downward trajectory, hitting an all-time low of Rs 85.81 against the dollar, the steepest decline in the last two years.
Following this, the Sensex rose by another 300 points, the Nifty gained 80 points, and the Bank Nifty climbed by 200 points. The Nifty Midcap index also saw an increase of around 200 points. Sector-wise, the Auto, NBFC, Bank, and IT indices on the NSE rose, while the Healthcare Index recorded some losses. Key stocks that saw gains on the Nifty included Bajaj Auto, IndusInd Bank, Tata Motors, Tech Mahindra, and ICICI Bank. On the other hand, stocks like Apollo Hospitals, Dr. Reddy's, Britannia, Titan, and HCL Tech experienced declines.
Global Market UpdateLooking at global markets, there are signs of a slowdown. The GIFT Nifty saw a slight increase above 23,900, while the US futures market experienced a decline. On Thursday, there was a slight uptick in the market, accompanied by sharp fluctuations during the weekly expiry of Nifty. As the January series of Nifty begins today, market watchers are keen to see how it unfolds.
The Fall of the RupeeThe continued depreciation of the rupee is seen as a reflection of a weakening economy. Experts attribute the fall to an excess of foreign capital and a strong demand for dollars, particularly from importers making end-of-year payments. This has led to a strengthening of the dollar and increased pressure on the rupee. India’s foreign exchange reserves are also shrinking due to this trend.
However, the rupee's decline is somewhat contained by softer crude oil prices and improvements in the domestic market.
Rupee Likely to Fall Below Rs 86Experts predict that the rupee could fall below Rs 86 against the dollar by the end of March 2025. The rupee has weakened by 3% against the US dollar this year. After opening at Rs 85.35 per dollar on Friday, the rupee continued its downward trend.