Nifty targets fresh all-time peak as rupee sinks to record low — can the bulls weather the currency turmoil?

India’s stock market is approaching a pivotal moment. The Nifty index is edging extremely close to its historic peak—barely 210 points away—yet this optimism is being overshadowed by the rupee’s sharp collapse to an unprecedented low near 89.5. Friday brought additional pressure as overseas investors turned net sellers and currency volatility surged, marking the steepest single-day decline in the rupee since May. These developments raise questions about whether the current market momentum can endure. The situation has become even more delicate. Foreign institutional investors dumped roughly ₹1,700 crore worth of equities in a single session, reflecting a swift change in sentiment. A weakening rupee reduces dollar-adjusted returns, making Indian assets less appealing to global investors and increasing the likelihood of further outflows. In the days ahead, the market will be tested on whether it can sustain its upward trajectory despite intensifying currency-driven pressures. The interplay between a surging equity benchmark and a deteriorating currency will shape the immediate outlook for India’s financial markets. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.