Indian shares edge up on rupee rally, but war worries drag weekly performance
Indian shares recovered the day’s losses on Thursday on a rupee surge after central bank action, but fading hopes of a swift end to the Iran war stretched the losing streak to a sixth week. The Nifty 50 closed 0.15% higher at 22,713.1 and the Sensex rose 0.25% to 73,319.55, after falling more than 2% earlier in the session. The rupee climbed 1.8% against the U.S. dollar after hitting a record low in the previous session. The Nifty 50 and Sensex fell 0.5% and 0.4% for the holiday-shortened week as the Middle East war dragged on and Brent crude rose to $109 per barrel after U.S. President Donald Trump vowed more aggressive strikes on Iran. India’s manufacturing sector growth slowed to a near four-year low, while the government raised jet fuel and commercial LPG prices, heightening concerns that a prolonged energy shock could hit growth and inflation in Asia’s third-largest economy. On Thursday, traders likely covered short positions ahead of the long weekend, driving an intraday recovery, said U.R. Bhat, co-founder of Alphaniti Fintech in Mumbai. Twelve of the 16 major sectors fell this week. Small-caps rose 0.2%, while mid-caps slipped 0.8%. Bank stocks declined 1.4%, extending losses to a sixth straight week, the longest streak since October 2023, on concerns curbs on forex speculation could lead to trading losses. Pharmaceutical stocks lost 3.4% after a Bloomberg News report said the Trump administration may impose tariffs on drugmakers that have not agreed to lower prices in the U.S. Bharat Electronics rose 4.2%, leading defence stocks 2.4% higher, after India cleared proposals for $25 billion of military purchases.
