Indian Markets Anticipate Sideways Trading Amid Rupee Concerns

Market experts anticipate sideways trading in Indian markets due to the lack of significant short-term catalysts. (AI image)Stock market today:Nifty50andBSE Sensex, the Indian equity benchmark indices, opened flat in trade on Wednesday. While Nifty50 was above 25,850, BSE Sensex was near 84,700. At 9:16 AM, Nifty50 was trading at 25,864.25, up 4 points or 0.016%.BSE Sensex was at 84,705.43, up 26 points or 0.030%.Market experts anticipate sideways trading in Indian markets due to the lack of significant short-term catalysts.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Recent sharp fall in the rupee and crude has been attracting the attention of investors. Decline in crude, on poor demand from China and the US, is good news for India’s macros, which are already in a Goldilocks setting.IPL Auction 2026IPL Auction 2026: Full list of sold and unsold players for all teamsIPL 2026 team and squad List: Updated players for all 10 Teams; who got whomHowever, sustained fall in the rupee is accelerating FII outflows, thereby hurting the market. This kind of sharp depreciation in the rupee was not expected particularly after the November trade data showed a sharp decline in trade deficit at $24.5 billion vs $41.5 billion in October.One possible reason for the RBI’s non-intervention in the currency market to stem the rupee slide is that the rupee depreciation is not hurting the economy.With very low CPI inflation of 0.71% in November, there is no threat of imported inflation. On the other hand, rupee depreciation is a boost for India’s exports which were impacted by the Trump tariffs.”“With the ongoing weakening of the AI trade, FIIs are likely to turn buyers in India sometime in 2026. If, along with this, a US-India trade deal happens, FIIs will turn buyers in India. There is a likelihood of rupee strengthening in H1 2026.Therefore, while FII selling is depressing stock prices now, investors should buy in anticipation of a 2026 rally.”US stock market indices showed varied results on Tuesday afternoon, with Nasdaq finishing higher, whilst the S&P 500 and Dow Jones declined due to losses in healthcare and energy sectors.Asian equities followed US markets lower at opening, showing modest declines after underwhelming US employment data failed to strengthen expectations for Federal Reserve rate cuts.Oil prices rose significantly on Wednesday following US President Donald Trump's declaration of "a total and complete" embargo on all sanctioned oil tankers entering and leaving Venezuela, heightening geopolitical concerns amidst existing demand uncertainties.Foreign portfolio investors conducted net sales of shares amounting to Rs 2,381 crore on Tuesday. Domestic institutional investors maintained net purchases at Rs 1,077 crore.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)Get an chance to win ₹5000 Amazon Voucher by taking part in India's Biggest Habit Index! Take the survey here