Equity benchmark indices Sensex and Nifty began the first trading session of 2026 on an optimistic note, supported by steady buying by domestic institutional investors and strong gains in blue-chip Reliance Industries.

The 30-share BSE Sensex climbed 223.54 points to 85,444.14 in early trade on Thursday (January 1, 2026). The 50-share NSE Nifty went up by 65.75 points to 26,195.35.

From the 30-Sensex firms, InterGlobe Aviation, Mahindra & Mahindra, Eternal, Reliance Industries, Larsen & Toubro and UltraTech Cement were among the biggest gainers.

ITC, Bharat Electronics, Trent and Bajaj Finance were among the laggards.

Asian markets were closed on Thursday (January 1, 2025). U.S. markets ended lower on Wednesday (December 31, 2025).

“Indian equity markets step into the first trading session of 2026 on a cautiously optimistic note, set against a globally quiet backdrop as most major international markets remain closed for New Year’s Day. With the U.S., Europe, and several Asian markets shut, global cues are limited and early liquidity is expected to remain thin.

“As the session progresses, domestic participation is likely to improve, supported by steady DII inflows and the renewed optimism that typically accompanies the start of a new calendar year,” Ponmudi. R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,597.38 crore on Wednesday (December 31, 2025), while Domestic Institutional Investors (DIIs) bought stocks worth ₹6,759.64 crore, according to exchange data.

Brent crude, the global oil benchmark, declined 0.78% to $60.85 per barrel.

On Wednesday (December 31, 2025), the Sensex jumped 545.52 points or 0.64% to settle at 85,220.60. The Nifty soared 190.75 points or 0.74% to end at 26,129.60.

In the entire 2025, the Sensex rallied 7,081.59 points or 9%, and the Nifty zoomed 2,484.8 points or 10.50%.

The rupee plunged 9 paise to a record low of 90.87 against the U.S. dollar in early trade on Tuesday (December 16, 2025), weighed down by sustained Foreign Institutional Investors (FIIs) outflows and no breakthrough in the India-U.S. trade deal.

However, a weaker greenback and a decline in global crude oil prices capped further losses in the domestic unit, according to forex traders.

At the interbank foreign exchange, the rupee opened at its all-time low of 90.87 against the U.S. dollar, down 9 paise from its previous close, and traded in a narrow range of 90.77-90.87 in early trade.

The rupee on Monday (December 15, 2025) settled at a new all-time low of 90.78 against the U.S. dollar, registering a loss of 29 paise over its previous close, weighed down by uncertainty over an India-U.S. trade deal and persistent foreign fund outflows.

“The India-U.S. trade deal still seems to be off by a distance with the Commerce Secretary saying the first phase will be signed before the end of the year and news that we are closest to the deal being signed. The uncertainty has clouded the recovery on the dollar and rupee pair as the rupee opened lower with dollar buying happening every day,” Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said.

Even a reduction in trade deficit on Monday (December 15, 2025) could not bring about a recovery in the rupee with FII outflows continuing, Mr. Bhansali added.

According to the latest government data released on Monday (December 15, 2025), India’s trade deficit narrowed to a five-month low of $24.53 billion in November, as exports rebounded by 19.37% to a six-month high of $38.13 billion after contracting in October, driven by higher shipments of engineering and electronics goods.

At the same time, the country’s imports dipped by 1.88% to $62.66 billion due to a fall in the inbound shipments of gold, crude oil, coal, and coke.

FIIs sold equities worth ₹1,468.32 crore on Monday (December 15, 2025), according to exchange data.

Also, wholesale price inflation stayed in the negative for the second consecutive month in November at (-) 0.32%, even though there was an uptick in prices of food articles like pulses and vegetables on a month-on-month basis, government data showed on Monday (December 15, 2025).

Wholesale Price Index (WPI) — based inflation was at (-) 1.21% in October and 2.16% in November 2024.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% lower at 98.27.

Brent crude, the global oil benchmark, was trading 0.61% lower at $60.19 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index, Sensex, declined 363.92 points to 84,849.44 in early trade while the Nifty was down 106.65 points to 25,920.65.

The rupee hit a record low on Friday (December 12, 2025), as sentiment remained bogged down by the absence of a trade deal with the U.S. and portfolio outflows, drawing likely intervention by the Reserve Bank of India (RBI) to curb the fall.

The rupee weakened to ₹90.55 against the U.S. dollar, slipping past its previous all-time low of ₹90.4675 hit on December 11. The currency was last at ₹90.3475 as of 10:00 a.m., little changed on the day.

The rupee is Asia’s worst performer this year. It has fallen nearly 6% against the dollar year-to-date, as steep U.S. tariffs of up to 50% on Indian goods hurt exports to its biggest market, while also diminishing the appeal of local equities for foreign investors.

With negotiations ongoing, Prime Minister Narendra Modi said he spoke with U.S. President Donald Trump by phone on Thursday (December 11), as New Delhi seeks relief from 50% U.S. tariffs.

“The rupee weakness has further to go if tariffs are here to stay. The expectations are currently one-sided explaining importer demand while exporters remain missing, plus the pressure from portfolio outflows,” said Dhiraj Nim, an economist and FX strategist at ANZ.

“The RBI will be open to weakness but in a calibrated manner,” he said.

Foreign investors have net sold $18 billion of Indian shares in 2025 so far, making it one of the hardest-hit markets in terms of portfolio outflows.

Traders pointed to firm dollar bids in the non-deliverable forwards market alongside hedging demand from importers as factors behind the rupee’s decline on Friday (December 12).

The Central Bank, meanwhile, likely stepped in via dollar sales through state-run banks to curb the rupee’s fall, four traders told Reuters.

“As the rupee touches an all-time low and remains near it, we continue with our process of asking exporters to continue selling (dollars) in cash and importers to keep buying the dollars on the dip (in USD/INR),” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.

Asian currencies were trading mixed while the dollar index wallowed near a two-month low.

According to analysts and bankers, U.S. trade negotiations remain the focal point for the rupee, and a breakthrough could help the currency snap from its recent falling streak.

The rupee’s rough patch has also pushed into undervaluation territory.

The currency’s trade-weighted real effective exchange rate, which accounts for the variation in inflation with trading partners, declined to 97.47 as of October, RBI data showed. A reading below 100 signals undervaluation.

The rupee depreciated 9 paise to close at 89.96 (provisional) against the U.S. dollar on Wednesday (December 10), tracking a negative trend in domestic equities and sustained foreign fund outflows.

Forex traders said investors are in a wait-and-watch mode, awaiting clarity from the U.S. Federal Reserve before taking decisive positions.

Investors are also awaiting cues from the U.S.-India trade talks, which could boost the rupee in the coming days.

At the interbank foreign exchange market, the rupee opened at 90.00, then fell to an intra-day low of 90.10 against the U.S. dollar and finally settled for the day at 89.96 (provisional), down 9 paise from its previous close.

On Tuesday (December 9), the rupee settled up 18 paise at 89.87 against the U.S. dollar.

“We expect the rupee to trade with a negative bias on weak domestic markets and FII outflows, which continue to pressurise the rupee. Delay in trade deal between India and U.S. may further dent the rupee,” Anuj Choudhary, Research analyst, Mirae Asset ShareKhan, said.

Commerce and Industry Minister Piyush Goyal on Wednesday (December 10) said talks with the U.S. on the proposed bilateral trade agreement are progressing.

“Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement,” he said.

A delegation led by Deputy U.S. Trade Representative (USTR) Rick Switzer is in the national capital for two-day trade talks with his Indian counterpart Rajesh Agrawal.

The U.S.’ chief negotiator for the pact, Assistant US Trade Representative for South and Central Asia Brendan Lynch, will hold discussions with India’s chief negotiator and Joint Secretary in the Department of Commerce, Darpan Jain.

Choudhary further noted that a weak tone in crude oil prices and a decline in the US dollar may support the rupee at lower levels. Investors may remain cautious ahead of the FOMC meeting decision. USDINR spot price is expected to trade in a range of 89.70 to 90.30.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09% lower at 99.12.

Brent crude, the global oil benchmark, was trading 0.26% higher at $62.10 per barrel in futures trade.

On the domestic equity market front, the Sensex dropped 275.01 points to settle at 84,391.27, while the Nifty fell 81.65 points to 25,758.

Foreign Institutional Investors sold equities worth ₹3,760.08 crore on Tuesday (December 9), according to exchange data.

The rupee declined 6 paise to 88.72 against the U.S. dollar in early trade on Monday (November 17, 2025) amid a firm American currency and relentless outflow of foreign capital.

Positive sentiment in domestic equity markets and lower crude oil prices overseas, however, prevented a sharp fall in the Indian currency, forex analysts said.

They said investors are also watching the progress on the proposed India-U.S. trade deal as well as the domestic PMI data to be released later this week.

At the interbank foreign exchange market, the rupee opened at 88.70 and slipped further to trade at 88.72 against the greenback in initial deals, registering a loss of 6 paise from its previous closing level.

On Friday, the rupee settled 4 paise higher at 88.66 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.15% higher at 99.35.

Brent crude, the global oil benchmark, was trading 0.85% lower at $63.84 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 212.98 points or 0.25% to 84,775.76 in early trade, while the Nifty advanced 50.90 points or 0.20% to 25,960.95.

Foreign institutional investors sold equities worth ₹4,968.22 crore on Friday, according to exchange data.

The government data released on Friday showed the country’s wholesale price inflation fell to a 27-month low of (-) 1.21% in October, led by a sharp deflation in food items like pulses and vegetables, and lower prices of fuel and manufactured items.

Wholesale Price Index (WPI)-based inflation was 0.13% in September and 2.75% in October last year, the data showed.

Also, foreign exchange reserves dropped by another $2.699 billion to $687.034 billion during the week ended November 7, the RBI said on Friday.

The forex kitty has been on a declining trend for the past few weeks, and had decreased by $5.623 billion to $689.733 billion in the previous reporting week.

The rupee plunged 43 paise to close at 88.26 (provisional) against the U.S. dollar on Monday (October 27, 2025), as broad strength in crude oil prices and month-end dollar demand from importers weighed on investor sentiment.

Forex traders said the rally in crude oil prices was driven by a potential U.S.-China trade deal, which supports expectations for a stronger global oil demand.

At the interbank foreign exchange, the rupee opened at 87.87 against the greenback and fell to an intra-day low of 88.31 and a high of 87.86. It finally closed the day at 88.26 (provisional) against the greenback, down 43 paise from its previous close.

On Friday, the rupee appreciated 5 paise to close at 87.83 against the U.S. dollar.

Traders continue to watch developments around trade negotiations and geopolitical events for further cues.

“We expect the rupee to trade with a positive bias on improved domestic market sentiments amid optimism over the trade deal and strong domestic equities. Easing geopolitical tensions may also support the rupee.

“However, month-end dollar demand from importers and a surge in global crude oil prices may cap sharp upside. USDINR spot price is expected to trade in a range of 87.80 to 88.50,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08% lower at 98.86.

Brent crude, the global oil benchmark, was trading 0.85% lower at $65.39 per barrel in futures trading.

On the domestic equity market front, the Sensex jumped 566.96 points to settle at 84,778.84, while the Nifty climbed 170.90 points to 25,966.05.

Foreign Institutional Investors purchased equities worth ₹621.51 crore on Friday, according to exchange data.

Meanwhile, India’s forex reserves increased by $4.496 billion to $702.28 billion during the week ended October 17, as the value of gold reserves rose further, the RBI said on Friday.

In the previous week, the overall reserves had jumped by $2.176 billion to $697.784 billion.