Nifty Rebounds Ahead of RBI Policy Amid Rupee Weakness

The benchmark Nifty index rebounded on the expiry day, driven by a decline in the India VIX and lower Brent crude oil prices. Investors are now eagerly awaiting the Reserve Bank of India's policy decision, which comes amid persistent rupee weakness. The rupee slipped further against the US dollar, influenced by foreign capital outflows and uncertainties surrounding a potential US-Iran deal.

The GIFT Nifty, which indicates the likely movement of the Nifty, traded lower by 34 points, suggesting a negative start for Dalal Street. Technical analysts note that as long as the index stays above 22,600, the sentiment may remain positive, with resistance at 22,850. A sustained move above this level could spark further recovery, while failure to surpass it might lead to a market correction.

Asian shares held near record highs, buoyed by optimism over earnings prospects that pushed Wall Street benchmarks to new highs. Oil prices rose due to supply concerns from a storm heading towards US oil-producing regions and attacks on Saudi Arabia, counterbalanced by increased Middle East crude supplies. Meanwhile, gold prices remained flat, with attention shifting to the US Federal Reserve's meeting minutes for insights on monetary policy.

Stocks in the F&O ban for the day included SAIL, Bandhan Bank, and Ambuja Cement. Foreign portfolio investors net sold shares worth Rs 2,961 crore, while domestic institutional investors were net buyers at Rs 5,089 crore. The rupee declined 8 paise to settle at 96.43 against the US dollar.