New Delhi, Oct 15: The Indian rupee is likely to remain in an appreciating territory even as global markets remain engulfed in turbulence, while the government and the Reserve Bank of India (RBI) may need to consider further policy steps to shore up resilience, a report said on Thursday.

The report from SBI Research forecasted inflation to peak at around 6.8 per cent in November 2026. It predicted that India’s 10-year yield will likely touch 7.6 per cent which will aid in price discovery in the future as well.

“The USD/INR forward implied yield opened at 4.60 per cent, around 42 bps higher than yesterday’s close,” the report noted.

Higher hedging costs make dollar funding more expensive and could encourage corporates to shift towards INR-denominated borrowing, supporting demand for the rupee, it added.

“The RBI has done a stupendous job and now the government must step up in reducing structural frictions on the taxation front, European Central Bank policy, ODI and AI policy,” the report noted.

The RBI could adopt a calibrated tightening approach through an asymmetric corridor adjustment, raising the MSF rate by 50 bps from 5.75 per cent to 6.25 per cent in the interim.

This could be followed by a 25 bps repo rate hike in December, taking the repo rate to 5.75 per cent and the MSF rate to 6.50 per cent, it forecasted.

Global financial markets are likely to remain volatile amid persistent geopolitical uncertainties, elevated US yields and evolving inflation dynamics.

The RBI has taken salutary steps to stabilise market conditions and can act up to a point, but further measures by the government on the taxation front, particularly concerning G-secs and ECBs clarity on AI policy, could help deepen domestic borrowing avenues and support capital flows.

Mumbai, Oct 15: Domestic equity benchmarks opened higher on Thursday, defying fragile sentiment amid weakness in technology stocks across the US and Asian markets.

Sensex opened at 72,965.80, up 183.91 points or 0.25 per cent, while Nifty started at 22,671.30, up 48.60 points or 0.21 per cent.

In early trade, sectoral performance was mixed. Nifty IT, Nifty FMCG, Nifty Auto and Nifty Private Bank were top gainers and increased up to almost 2 per cent.

On the other hand, Nifty Metal was the top laggard which declined 1 per cent. Similarly, PSU bank, consumer durables, pharmaceuticals and healthcare indices were traded lower.

Market experts said hotter-than-expected US inflation — which spiked to 3.7 per cent in September from 3.4 per cent in August — has increased the possibility of another rate hike by the US Federal Reserve in October.

The concern triggered big selling in US markets, with tech-heavy Nasdaq correcting 1.88 per cent, they added.

“The fear has spread to South Korea and Japan. Nikkei is down above 4 per cent and Kospi down more than 7 per cent. From the Indian market perspective, the correction in AI stocks is a positive,” according to the experts.

FIIs who have been selling Indian stocks and buying AI stocks will halt this trend.

Technically, Nifty formed a bearish-leaning candle, while RSI stood at 41.66, above its average of 32.01, indicating some recovery in momentum, according to analysts.

On Wednesday, FIIs remained net sellers and offloaded equities worth approximately Rs 1,857 crore, while DIIs provided strong support with net purchases of around Rs 2,670 crore.

Additionally, Wall Street ended lower on Wednesday as US inflation fueled rate-hike concerns, weighing on the Nasdaq and AI. Asian markets were also trading in red zone.

In addition, crude oil prices declined nearly 2 per cent as investors weighed Strait of Hormuz supply risks against US moves to ease shipping costs.

Mumbai, Oct 14: Domestic equity benchmarks opened on a muted note on Wednesday with investors weighing supportive domestic cues against persistent global headwinds.

Nifty began the session at 22,715.75, down 6.20 points or 0.03 per cent. Similarly, Sensex opened at 73,049.76, up 15.98 points or 0.02 per cent.

However, sectoral performance remained mixed with technology stocks leading gains.

Nifty IT emerged as the top gainer, rising more than 1 per cent, followed by Nifty MidSmall IT & Telecom and Nifty FMCG which surged up to 0.38 per cent.

Nifty Media and Nifty Private Bank were also in positive territory.

Meanwhile, Nifty Consumer Durables fell 0.67 per cent. Healthcare-related indices remained under pressure with shedding up to 0.6 per cent.

According to market experts, Tuesday’s sharp rally in the Nifty came as a surprise in an otherwise weak and downtrending market, largely driven by short-covering activity.

The trigger for the upswing was Finance Minister Nirmala Sitharaman’s remarks that the government would carefully review stakeholder feedback on the long-term capital gains (LTCG) tax and securities transaction tax (STT), they added.

The comments raised hopes of potential policy changes, boosting investor sentiment.

Analysts also highlighted the RBI’s recent measures to curb currency market speculation which helped the rupee appreciate nearly 1.5 per cent over the past two trading sessions.

However, caution persists as the US 10-year Treasury yield remains around 5.2 per cent and Brent crude trades near $106 per barrel, both of which are viewed as significant headwinds for equities.

While these factors could limit the sustainability of the rally, analysts believe sectors such as financials, telecom, metals and automobiles could remain relatively resilient on expectations of healthy second-quarter earnings.

Technically, analysts note that the recent surge has revived hopes of a move towards the 23,200 level.

They further noted that the index is approaching a congestion zone that could challenge further upside momentum. Immediate support is seen around 22,550, while a decisive move above the 22,787-22,880 hurdle could strengthen bullish momentum.

Additionally, Asian equities rebounded after two consecutive sessions of losses, supported by expectations that the US Federal Reserve may adopt a less aggressive approach to interest rate hikes next year.

Crude oil prices advanced as traders assessed supply risks stemming from clashes involving Yemen’s Iran-aligned Houthis and Saudi Arabia, while also monitoring the prospect of increased Russian diesel supplies to global markets.