Facing the triple blow of sharp spike in crude oil prices, falling rupee against the US dollar and interest rate upcycle, Indian equities have been under sustained pressure this year, with the Nifty 50 down around 14% in 2026. Sensex fell around 1% from day's high on Monday morning even as the rupee rebounded 1% on new measures taken by the RBI.
The central bank measures came after the rupee closed near Rs 96.78 per dollar on Friday as the RBI’s 25-basis-point repo rate hike failed to provide lasting support to the currency, as foreign investment outflows, importer dollar demand and elevated crude prices continued to weigh on sentiment.
