Rupee gains 96 paise, but Nifty falls 157 points on crude, FII outflows

On Monday, Indian equities experienced a decline as higher crude oil prices, persistent foreign fund outflows, and increasing bond yields dampened investor sentiment. Despite the rupee appreciating by 96 paise, reaching 95.77 against the US dollar, the Nifty 50 fell by 157.10 points or 0.70%, closing at 22,363.35. The Sensex dropped 547.65 points or 0.76%, settling at 71,924.68.

The Bank Nifty declined by 338.65 points or 0.61%, settling at 54,918. The Nifty opened 70 points higher and peaked at 22,651.10 before reversing course. Nandish Shah of HDFC Securities noted that profit booking began immediately after opening and continued throughout the session. The NSE cash-market turnover decreased by 4% from the previous session.

The rupee's strong performance was attributed to Reserve Bank of India measures aimed at easing dollar demand from state-run oil marketing companies and tightening norms for corporate foreign exchange derivative positions. However, the currency's gain did not significantly boost equity sentiment due to crude oil prices remaining high.

Brent crude prices fluctuated between $102 and $105 a barrel, while West Texas Intermediate stayed above $92. Foreign institutional investor outflows, which have surpassed ₹3 lakh crore in 2026, continued to negatively impact domestic equities. The 10-year government bond yield rose for the fourth consecutive session, adding to investor caution.

Geopolitical tensions, a weak Asian market, and upcoming domestic corporate earnings and inflation data also contributed to the negative outlook. While some sectors, such as Nifty Media, Chemicals, Auto, Realty, and Pharma, experienced gains, FMCG declined over 1.70% and became the worst performer. Among Nifty constituents, Dr Reddy's Laboratories, Bajaj Auto, and Tata Motors led the gainers, while Apollo Hospitals, ITC, and Tech Mahindra were among the biggest losers.

Technical analysts suggest that the Nifty faces immediate support in the 22,180–22,250 range, with resistance at 22,500–22,530. A break below support could extend the correction, while a sustained move above resistance is necessary for a positive near-term outlook.