Nifty Steadies at 24,000 Despite Rupee Collapse and PSU Bank Selloff
Nifty steady at 24,000 as rupee weakens; crude oil prices and Asian weakness cited.
Indian equity benchmark Nifty traded near the 24,000 mark in early dealings on Tuesday, while the rupee weakened sharply against the US dollar amid pressure from rising crude oil prices and cautious global market sentiment. Investors tracked domestic earnings, foreign fund flows and broader cues from Asian markets as trading began on a mixed note.
The rupee fell 24 paise to 94.39 against the US dollar in early trade, extending recent weakness in the local currency. Market participants said higher crude prices tend to pressure the rupee because India imports a large share of its energy needs. Weakness in several Asian currencies also added to the cautious tone in foreign exchange markets.
On the equities front, the Nifty remained steady around the key psychological level of 24,000 despite sector-specific volatility. Public sector bank stocks came under selling pressure, with some counters declining by as much as 4 per cent in early trade. Traders said profit booking and valuation concerns may have weighed on the banking segment after recent gains.
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The market mood remained relatively stable after both the Sensex and Nifty ended a three-session losing streak on Monday, supported by a rebound in information technology shares following last week’s selloff. GIFT Nifty futures were also indicating a softer start compared with the previous close of 24,092.70. Analysts said investors are likely to remain selective in the near term, focusing on quarterly earnings, inflation trends and global interest-rate expectations.
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