The Indian rupee fell to around 90.4 per dollar, extending losses for another session and the lowest in four weeks amid weaker capital inflows and less dovish signals from Federal Reserve officials. Traders cited a strong US labor market and Fed guidance that any rate cuts would depend on sustained progress toward the 2% inflation target, which has kept Treasury yields elevated and the dollar firm, leaving the rupee under pressure. Adding to market caution, India’s economic data disappointed expectations; unemployment rose slightly to 4.8% in December 2025 from 4.7% in November, while the merchandise trade deficit widened sharply to $25 billion, up from $20.6 billion a year earlier. The releases prompted investors to adjust their expectations toward further monetary easing by the Reserve Bank of India
India's BSE Sensex closed about 0.2% up at 83,570 on Friday, ending a two-day losing streak, driven by better Q3 results from IT and mid-segment banking stocks. Gains in select IT and banking heavyweights outweighed weakness in consumer durables and pharma stocks. Infosys emerged as the top gainer, climbing 5.7%, after the IT major posted stronger-than-expected Q3 results and raised its revenue growth projections. Tech Mahindra surged 5.2% as it announced robust Q3 FY26 results, with HCL Tech (1.6%) and TCS (0.5%) also advancing. Investor attention also shifted to banks, with early results highlighting stronger asset quality and margins, lifting sector sentiment. HDFC Bank and Bajaj Finance rose 0.5% and 0.4%, respectively, on the prospects of healthy Q3 earnings. On the flip side, Eternal (-3.7%), Asian Paints (-2.3%), Maruti (-1.8%), BEL (-1.7%) and Sun Pharma (-1.7%) were among the top losers. For the week, the index was almost flat.
