The Indian rupee strengthened to around 95.2 per dollar, recovering from previous-session losses as lower crude oil prices improved sentiment. The rebound followed a sharp decline in global oil markets amid optimism over a potential US-Iran diplomatic breakthrough. Brent crude fell to $88.80 per barrel, its lowest level in two months, after President Donald Trump suggested a peace agreement with Iran could be reached as early as the weekend. The improved outlook also lifted Asian equities, while US Treasury yields and the dollar weakened. Despite the positive mood, investors remain cautious, as earlier signs of progress in US-Iran talks failed to produce a final deal. The Reserve Bank of India has implemented measures to attract dollar inflows and support the currency, but the rupee's recent slide below pre-intervention levels highlights ongoing challenges. Analysts say lasting support for the rupee will require a sustained decline in oil prices.
India’s BSE Sensex gained ground to close about 2.3% firmer at 75,528 on Friday, the biggest daily gain since early April, tracking a global rally fueled by optimism around a looming US-Iran deal. The emerging peace deal reduces geopolitical risks and could support renewed foreign inflows into Indian equities. Gains were broad-based, led by banking, financial, realty, auto, and consumer stocks. Private sector lenders saw strong buying, led by HDFC Bank (3.7%), Axis Bank (2.9%), Kotak Mahindra Bank (2.6%), and ICICI Bank (1.7%). Bajaj Finance emerged as the top gainer, surging 5.6%, followed by Larsen & Toubro (4.9%), IndiGo (4.6%), Titan Company (4.%), and Eternal (3.9%). Meanwhile, the IT sector was pressured by a 2.2% slump in Tech Mahindra. For the week, the index booked a gain of 1.7%.
