Mumbai, May 13: The Indian rupee opened 75 paise stronger at 84.65 against the US dollar on Tuesday, following its previous close at 85.38 a dollar.

The trading range for the day was expected to be between 84.50 and 85.25, according to analysts. The dollar maintained its gains following a significant trade pact between the US and China.

The US will reduce tariffs on Chinese goods from 145 per cent to 30 per cent for 90 days, while China said it will cut tariffs on US goods from 125 per cent to 10 per cent for 90 days. The two countries will establish a mechanism to continue discussions about economic and trade relations.

According to analysts, any fresh developments on the geopolitical front are likely to have a significant impact on the rupee’s direction.

In FY25, rupee traded in the range of 83.10 and 87.6 against the greenback, initially weakening after the US election results and depreciating by 2.4 per cent over the year due to persistent FPI outflows and a strong US dollar.

Despite these challenges, the rupee remained relatively stable compared to other global currencies, supported by healthy government finances, a declining current account deficit, improved liquidity, and moderating oil prices, among others, according to the NSE’s ‘Market Pulse Report’ for April.

Towards the end of the year, a reversal in dollar strength and renewed FPI inflows into debt helped the rupee recover, appreciating by 2.4 per cent in March 2025.

The rupee’s average annualised volatility declined to 2.7 per cent in FY25, positioning it among the least volatile major emerging market currencies, highlighting India’s strong external buffers and proactive forex management.

“However, the rupee remained overvalued, with the 40-currency trade weighted REER rising to 105.3, although both REER and NEER moderated gradually from H1FY25, indicating an easing of overvaluation. The one-year forward premium for the rupee continued to moderate, reflecting changing premium dynamics and India’s macroeconomic resilience,” the report mentioned.

Mumbai, May 12: The ceasefire between India and Pakistan has paved the way for a sharp rally in the market and with this, foreign institutional investors (FIIs) are likely to resume their equity purchases in India, analysts said on Monday.

Sensex and Nifty surged more than 2.7 per cent in the morning trade.

According to market watchers, the prime mover of the rally will now be the FII buying, which has been sustained for 16 continuous days except last Friday when the conflict escalated.

“Domestic macros like expectations of high GDP growth and revival of earnings growth in FY26 and declining inflation and interest rates augur well for the resumption of a rally in the market,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

FIIs favour large caps like ICICI Bank, HDFC Bank, Bajaj Finance, L&T, Bharti, Ultratech, M&M and Eicher. Midcap IT and digital stocks are other segments to watch.

Pharma stocks may come under near-term pressure from US President Donald Trump’s latest announcement regarding reducing prices of drugs in the US.

“There are rumours of impending US deal with China on trade but details are yet to come. If a deal materialises that would be good for the global economy,” said Vijayakumar.

The hallmark of FPI investment in recent days has been the sustained buying by FIIs. FIIs bought equity through the exchanges consecutively for 16 trading days ending 8th May for a cumulative amount of Rs 48,533 crore.

“They sold for Rs 3,798 crore on 9th May when the India-Pak conflict got escalated. Now that ceasefire has been declared, FIIs are likely to resume their equity purchases in India,” said analysts.

It is important to understand that FIIs were continuous sellers in India in the first three months of this year. The big selling began in January (Rs 78,027 crore) when the dollar index peaked at 111 in mid-January.

Thereafter, the intensity of selling declined. FIIs turned buyers in April with a buy figure of Rs 4,243 crore.

New Delhi, May 12: The Centre on Monday issued the NOTAM (Notice to Airmen) to reopen the 32 airports that had been shut down since May 9 due to the cross-border drone and missile attacks following heightened tensions between India and Pakistan in the wake of the Pahalgam massacre of 26 tourists by Islamabad-backed terrorists.

The airports that will gradually reopen include Chandigarh, Srinagar, Amritsar, Ludhiana, Bhuntar, Kishangarh, Patiala, Shimla, Kangra-Gaggal, Bathinda, Jaisalmer, Jodhpur, Bikaner, Halwara, Pathankot, Jammu, Leh, Mundra, Jamnagar, Hirasar, Porbandar, Keshod, Kandla and Bhuj.

The airports will be opened gradually as, although the ceasefire announced following the Pakistan DGMO’s (Director General of Military Operations) request is largely holding, the government does not want to take any chances.

“The night remained largely peaceful across Jammu and Kashmir and other areas along the International Border. No incidents have been reported, marking the first calm night in recent days,” according to a statement issued by the Indian Army on Monday.

The opening of these airports which are close to the Pakistan border reflects a de-escalation in the cross-border hostilities which saw India successfully launching ‘Operation Sindoor’ to avenge the Pahalgam killings.

The reopening of these airports will help to restore normalcy in flight operations which have undergone widespread disruption due to the conflict.

Meanwhile, Delhi International Airport Limited (DIAL) said on Monday that operations at the airport are “currently smooth,” however, due to changing airspace conditions and increased security measures, some flight schedules and security checkpoint processing times may be affected.

The airport management has advised passengers to follow updates and instructions from their airlines, allow extra time for security checks due to heightened measures and adhere to hand baggage and check-in luggage regulations.

Passengers have been advised to check the latest flight status through their airline or the official Delhi Airport website.

Although an agreement for a ceasefire was reached on Saturday, the government is not taking any chances on the security front.

Prime Minister Narendra Modi held a meeting on Sunday with the three service chiefs and the Chief of Defence Staff to take stock of the latest situation.