Rupee suddenly getting some strength back against US dollar has changed mood in market,and honestly,this is not small thing ah . After so many months of pressure,investors are again looking at Indian stocks with little more confidence.
The Indian rupee had touched low of ₹96.96 per dollar on May 20 . But by June 19,it had recovered to ₹94.34 . That kind of move may look like just currency number to normal people,but for foreign portfolio investors,it changes risk calculation quite lot.
And this is where FPIs come into picture . For months,foreign investors were selling heavily from Indian stock market. Earlier in June itself,there was net outflow of ₹62,853 crore,which is huge money going out .
But now reports say FPIs have turned net buyers again,with purchases worth ₹3,386 crore in cash market during week ending June 19 . So yes,mood has shifted at least for now .
Few things standing out clearly here:
- Rupee recovered from ₹96.96 per dollar on May 20 to ₹94.34 as of June 19.
- FPIs bought shares worth ₹3,386 crore in cash market during week ending June 19.
- Nifty 500 companies reported 15.6% earnings growth for FY26 .
And tbh,stable rupee makes Indian assets look less risky for global investors . When currency keeps falling,even stock gains can get wiped out for foreign investors after conversion. So stronger rupee gives them one more reason to come back.
At same time,corporate earnings are also helping sentiment . Nifty 500 companies reporting 15.6% earnings growth for FY26 has given market one solid support point. It tells investors that companies are not doing badly despite all global noise.
But it is not like everything is sorted now only . Weak monsoon conditions are still concern because they can hit agricultural productivity,rural demand and inflation trends. That can again make investors cautious .
So while FPI selling pressure may be cooling down,these investors will likely still move carefully. They may buy when confidence improves and also book profits when market rallies too much.
For now,rupee recovery has clearly brought some relief to Dalal Street . But whether this buying continues or again becomes short-term trade… that question is still hanging.
