"foreign-institutional-investors"

The government has abolished long-term capital gains tax on foreign investors’ holdings in government securities to attract dollar inflows, support the rupee, and boost debt market participation amid record foreign equity outflows, rising geopolitical tensions, and pressure on India's forex reserves

The rupee weakened 10 paise to close at 95.29 against the US dollar due to rising crude oil prices, strong dollar demand and foreign fund outflows. Market participants await the RBI policy outcome, with the currency expected to remain range-bound

Mumbai markets opened lower as Sensex and Nifty slipped amid rising oil prices and foreign outflows. Weak global cues, inflation concerns, and cautious sentiment weighed on investors, despite selective gains, while domestic support remained limited and volatility persisted through session 

Forex analysts note that the local currency faced additional pressure from a strengthening U.S. dollar index and a rebound in crude oil prices, compounding the impact of selling in domestic equities and the ongoing outflow of foreign capital.

IndusInd Bank plunges, foreign fund outflow goes unabated

Later, both the benchmark indices faced volatility and were trading with marginal gains

From 30 Sensex firms, Infosys, Tech Mahindra, HCL Technologies, Sun Pharma, Tata Consultancy Services and Tata Steel were biggest gainers

The 30-share BSE Sensex fell by 171 points to 84,743.04 in early trade, while the NSE Nifty declined 48.7 points to 25,891.70. Among the Sensex firms, Tech Mahindra, Asian Paints, HCL Technologies, Nestle, Adani Ports, Infosys, Tata Motors, and State Bank of India were the top losers.

While 30-share BSE Sensex declines 212.54 points to 84,716.07 in early trade, NSE Nifty drops 52.2 points to 25,886.85

Forex traders noted that the US dollar weakened against major currencies following a softer-than-expected US Producer Price Index (PPI) report, making the Dollar Index susceptible to further correction. In the interbank foreign exchange market, the rupee opened at 83.90 against the dollar, gaining 7 paise from its previous close.

Forex traders noted that the 84.00 level is serving as a psychological resistance for the USD/INR pair. Market participants are also waiting for cues from the Indian CPI inflation and IIP data, which are set to be released later today.

This comes amid significant rally in the US and Asian markets along with buying in blue-chips Tata Consultancy Services and Reliance Industries

Forex traders expect the USD/INR pair to stay within a narrow range due to balanced dollar demand from foreign investors and oil companies, matched by supply from the Reserve Bank of India (RBI).

Forex traders said the local unit faced some resistance due to subdued sentiment in the domestic equity market and foreign fund outflows.

Forex traders cited a robust US dollar in global markets and crude oil prices above USD 90 per barrel as factors dampening investor sentiment.

Orders dried up as a result of this, they said, adding that this created a heightened uncertainty in the forex market, causing excess volatility in the Indian rupee, which was avoidable.

The Nifty gained 51.75 points or 0.26 per cent to end at 19,716.45. It moved between a low of 19,554 and a high of 19,730.70 in day trading.

The BSE Sensex declined 45.66 points to 65,734.60 in early trade. The Nifty slipped 12.75 points to 19,562.15.

Automobiles and components stocks witnessed an outflow of $125 million, followed by $101 million worth of selling in diversified financial stocks.

In the previous session, the rupee strengthened by 3 paise to close at 73.56 against the US dollar.