'If such inflows materialise, what will be the effect on the rupee's value -- and therefore on exports growth, the only sustainable path to recovery?', asks Mihir S Sharma.
The rupee closed marginally stronger against the dollar on Wednesday.
Rupee closed at 61.86 against the dollar on Tuesday.
The 50-share NSE Nifty, however, was little changed, ending 1.20 points down
Various global and domestic factors had a sizable impact on the performance of the Indian markets
'If credit is not available, people will postpone buying. That's what has happened.'
Among Sensex constituents, HCL Tech suffered the most by diving 2.26 per cent, followed by HDFC shedding 2.10 per cent.
'... Whether an incumbent is voted back or a coalition forms a new government except for a temporary disruption for a few weeks.'
In the case of Indian equities specifically, all eyes will now be on the next RBI monetary policy scheduled for September 29.
Fresh dollar selling by exporters after USD was trading weak by 0.24 per cent against its major global rivals also aided the rupee recovery.
The 50-share Nifty bounced 83.35 points, or 0.86 per cent, to 9,794.15 at close.
For the week, the Sensex recorded a fall of 371 points, or 1.10 per cent, and the NSE Nifty 130.75 points, or 1.25 per cent.
ICICI Bank was the top gainer in the Sensex pack, surging 4.64 per cent, followed by Axis Bank at 3.86 per cent and SBI 2.53 per cent.
In the Sensex pack, ICICI Bank emerged as the top gainer by rising 0.97 per cent, while Tata Steel advanced 0.92 per cent.
The rupee closes 12 paise down against the dollar.
For the second straight week, the Sensex rose, notching up a significant gain of 528.34 points, or 1.59 per cent. The Nifty was up 129.45 points, or 1.25 per cent, during the week.
On Wednesday, the rupee had dropped by 26 paise.
At the Interbank Foreign Exchange market, the domestic unit commenced higher at 61.80 a dollar from previous close of 61.92.
The rupee on Tuesday gained 14 paise to close at 61.88 against the dollar.
If the rupee falls further, it would negatively impact the dollar-based returns of foreign investors, and could influence foreign flows into India.
The 50-share NSE Nifty stayed in the positive zone and retook the 9,900-mark to hit a high of 9,905.05 as buying paced up towards the fag end. It settled higher by 72.45 points, or 0.74 per cent, at 9,899.60.
Retail inflation rose 4.38 per cent year-on-year in November, the slowest pace in data going back to January 2012.
Besides higher tax outgo, P-note issuers are worried about operational difficulties
Risk sentiment received a boost after eight core sectors grew to a five-month high of 4.9 per cent in August
The rupee had lost 21 paise on Tuesday's trade.
Rupee is seen strengthening against the dollar.
Stock markets in structural bull run but there can be bouts of volatility says Ravi Gopalakrishnan, head, equities, Canara Robeco Mutual Fund
Sensex has shed over 150 points in afternoon trade.
The broader NSE Nifty scaled a high of 10,856.55 before closing up by 55.90 points, or 0.52 per cent
The rupee recovered from initial losses against the American currency and was quoted higher by 6 paise to 62.00 on fresh selling of dollars by banks and exporters in view of strong foreign capital inflows into equity market.
The fall came on the back of a massive selloff in NBFCs, led by DHFL which skidded over 50 per cent on fears of a liquidity crisis.
HDFC Bank was the top loser in the Sensex pack, falling 2.99 per cent, followed by Adani Ports at 2.87 per cent.
Sustained demand for the dollar is the reason.
The rupee on Wednesday strengthened by another 3 paise to 62.82 against the US dollar.
Market participants attributed the robust inflows to positive investor sentiment
Analysts expect the inflows to accelerate further.
The ongoing corporate results and the Union budget are also making participants tread cautiously though the GST agreement provided some relief.
A widening probe by US authorities involving top drug companies following complaints of price fixing of generics was a point of worry for the participants, said analysts.
The BSE Sensex jumped 70.42 points to end at 34,503.49, while the broader NSE Nifty finished at 10,651.20, up 19 points.
The rupee snapped 2-day rise to end weaker against the dollar on Thursday.
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