Rupee Slides Past 96 as Sensex, Nifty End Mixed After Fed's First Rate Hike in Three Years

Indian markets navigated a rare split-screen session on Thursday: the rupee slid past the 96-to-the-dollar mark following the US Federal Reserve's first interest rate increase since 2023, even as domestic equities shrugged off the global jolt to close mixed, and the country's own stock exchange operator drew the day's biggest primary-market buzz with its own listing.

Fed's Surprise Hike Hits The Rupee

The Federal Reserve raised its benchmark rate by 25 basis points to a range of 3.75 to 4 percent, its first increase in three years, citing persistently elevated inflation and leaving the door open to a further hike later this year. The move strengthened the dollar broadly and pushed the Indian rupee past the psychologically important 96 level against the greenback, its weakest in recent memory, as investors recalibrated expectations for how long US rates will stay higher for longer. A weaker rupee raises import costs, including for gold, and readers tracking bullion prices can check the latest gold rate today to see how the currency move is filtering through to local prices.

Sensex, Nifty Close A Choppy Session Mixed

Despite the global cue, the Sensex ended the day down a modest 21.86 points, or 0.03 percent, at 74,314.59, while the Nifty bucked the trend to close 53 points, or 0.23 percent, higher at 23,270.60, helped by late bargain buying. Sector-wise, realty, pharma and auto stocks were among the stronger performers through the session, while banking and FMCG names lagged and capped the broader upside. Tata Group stocks were among the notable gainers after news broke that the Tata Sons board had approved a fresh term for chairman N Chandrasekaran along with a plan to list the holding company, giving sentiment around the group a lift even as the news also revealed a public rift with Tata Trusts chairman Noel Tata.

NSE's Own IPO Steals The Spotlight

The session's more unusual storyline was that the National Stock Exchange, the very venue hosting the day's trade, was itself in the primary market spotlight, with its Rs 22,562 crore initial public offering opening for subscription and drawing a 43 percent bid on day one. The rare overlap of the exchange operator running the market and simultaneously being sold to the public underscored just how active the IPO calendar has become this year, with several large issuers, including Reliance-backed Jio Platforms, also expected to test investor appetite before year-end. Traders said the coming sessions will likely hinge on whether the rupee stabilises near current levels and how foreign portfolio flows respond to the higher-for-longer signal from Washington, with domestic institutional buying seen as a key cushion against any renewed bout of global risk-off sentiment.

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