On December 29, the Indian rupee saw an upward trend against the US dollar, aligning with the ongoing surge in the domestic stock markets. As of 9:10 am, the rupee was valued at 83.18 against the dollar, reflecting a 0.21 percent increase from its previous closing rate of 83.35. The Indian stock markets have witnessed a continuous uptrend, marking the fifth consecutive session with a cumulative gain of approximately 2.5 percent. Notably, the Sensex and Nifty have both registered an impressive 17 percent gain each throughout the year.
India’s economic resilience has contributed to its exceptional position as an outlier in the Emerging Markets league for nine consecutive months, as indicated by the PMI. This resilience has enabled India to navigate global inflationary pressures in 2023 effectively. The impact of this economic strength is evident in the rupee’s recent performance, reaching 83.17, driven by sustained capital inflows throughout November and December. The robust performance of the equity markets, reaching new highs, has been a key factor in attracting these capital inflows, according to traders.
The positive trajectory in both equity markets and economic indicators underscores India’s attractiveness to investors amid global economic challenges. The sustained capital inflows and the rupee’s stability against the US dollar reflect confidence in India’s economic prospects. As the year concludes, the Indian financial landscape continues to exhibit resilience and remains an influential player in the Emerging Markets, showcasing its ability to navigate complex economic landscapes. Investors are closely monitoring these trends, considering the significant impact they can have on the overall economic outlook and financial stability in India.
Check here for the latest updates in Hindi!