The Reserve Bank of India has introduced its strongest support measures for the rupee since the 2013 taper tantrum, as the currency — Asia’s worst performer in 2026 — faces pressure from elevated oil prices and sustained foreign outflows. The central bank opened a dedicated dollar window for state-owned oil refiners, mandated 20% reserve requirements on large forex derivative trades, and slashed limits on speculative forward contracts. These moves aim to curb volatility and stabilize the currency, though analysts warn that high crude costs and persistent equity sell-offs by overseas funds may limit gains. The rupee is expected to advance modestly on Monday amid softer oil and stronger US futures, but sustaining momentum remains a challenge.
In equities, the Nifty 50 snapped a 25-week losing streak, with improved valuations attracting bargain hunters. Focus turns to September inflation data and earnings from HCL Technologies and ICICI Prudential AMC. Private lenders like HDFC Bank, Kotak Mahindra Bank, and ICICI Bank are favored by Nomura for steady interest income and cost discipline, while public banks may benefit from one-off gains. Automakers face margin pressure from rising input costs despite strong revenue growth, with two-wheelers outperforming four-wheelers.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing