Indian equities remained broadly stable, with the Nifty 50 rising 0.10% to 23,938.95 and the Sensex gaining 0.14% to 76,677.95. The market backdrop was supported by improving domestic liquidity and a stronger rupee, although elevated crude prices remain a key risk.
The Indian rupee strengthened 0.52% against the US dollar to ₹94.47, helped by substantial FCNR(B) inflows. The RBI’s special foreign-currency mobilisation measures attracted significant inflows, contributing to an improvement in banking-system liquidity and giving the central bank greater room to manage currency pressures.
Economic indicators also offered encouraging signals. India’s services PMI improved to 54.1 in August, while hiring reached its strongest pace in 15 months, indicating continued resilience in the services economy.
Meanwhile, India’s 7.8% Q1 FY27 GDP growth continues to generate debate, but economists point to strong GST collections, auto sales and domestic consumption as evidence that the expansion reflects genuine economic momentum.
Commodity markets were mixed: crude oil fell 0.89% to $90.20, easing some pressure on India’s import bill, while gold surged 1.40% to $4,476.50 as investors continued to seek safe-haven assets.
IPO activity remained another bright spot, with multiple listings showing strong investor appetite. Overall, the market is being supported by robust economic growth, improving liquidity and rupee stability, while crude oil prices and global market volatility remain key risks for investors.