Nifty eyes all-time high as rupee crashes to lifetime low: Can bulls survive the currency storm? - The Economic Times
The Nifty index is moving closer to its all-time high even as the Indian rupee has fallen to a lifetime low against the US dollar, creating a complicated environment for traders. Foreign investors have turned cautious due to global dollar strength, rising US bond yields, and persistent geopolitical worries. Despite this, domestic buying and strong corporate earnings continue to support the market. Analysts believe the bullish momentum may hold if liquidity remains stable and no major external shock emerges. However, currency pressure could increase volatility in sectors dependent on imports, such as oil, electronics, and chemicals. Investors are advised to stay selective, focusing on companies with strong fundamentals and minimal forex exposure. Market experts also expect banks, IT, and infrastructure stocks to provide near-term support. While optimism stays intact, traders should monitor inflation trends, global interest-rate movements, and RBI interventions, as these factors will shape the Nifty’s direction in the coming weeks.
The Key points
- Nifty inches toward a fresh all-time high.
- Rupee hits a lifetime low against the US dollar.
- Global dollar strength intensifies currency pressure.
- Foreign investors remain cautious amid uncertainties.
- Domestic buying supports market resilience.
- Corporate earnings continue to boost sentiment.
- Import-heavy sectors may face volatility ahead.
- Banks, IT, and infra stocks expected to stay strong.
- RBI’s currency actions closely watched by traders.
- Inflation and global rates to guide market direction.
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