Indian Rupee and Stock Indices Recover After Sharp Sell-Off

The Indian rupee gained 14 paise to reach 95.85 against the US dollar in early trade on Friday, September 25, 2026. The currency opened at 95.92, recovering from a 26-paise drop on Thursday. Despite the gain, the rupee remains under pressure from hawkish Federal Reserve rate signals and dollar demand from domestic oil importers, leading analysts to expect intervention from the Reserve Bank of India to manage volatility near the 96 mark.

Simultaneously, Indian equity markets rebounded following a steep sell-off. The BSE Sensex climbed 315.20 points to close at 73,895.74, while the NSE Nifty rose 77.40 points to settle at 23,140.50. This recovery was driven by value buying in blue-chip banking, automobile, and oil and gas shares, with Axis Bank emerging as the top Sensex gainer. A decline in Brent crude oil to $105.4 per barrel provided further relief to investors.

However, the rally only partially offset Thursday's losses, during which the Sensex plunged 1,247.71 points. Investors remain cautious due to elevated global yields and persistent selling by Foreign Institutional Investors, who offloaded equities worth ₹5,027.36 crore on Thursday.