Sensex, Nifty open flat as rupee hits record low
Markets started Wednesday pretty quietly—Sensex and Nifty barely moved—while the rupee slipped to a new all-time low against the US dollar.
This drop is mostly attributed to the lack of RBI intervention and FII selling.
Why does this matter?
A weaker rupee means things like gadgets, travel, and even your favorite imported snacks could get pricier.
Even though India's economy grew a strong 8.2% last quarter, the RBI not intervening to support the rupee has kept the currency under pressure.
What's behind these moves?
The Nifty index has dipped about 300 points lately because of changes in banking stocks and investors pulling out due to the weak rupee.
Still, experts think banking stocks might bounce back soon, so if you're investing, it's smart to stick with solid large- or midcap companies instead of chasing risky smallcaps right now.