Rupee depreciation may continue to bear on Indian market sentiments today

US equity markets ended the day in green yesterday, 3^rd December, 2025. Nasdaq ended the day, up by 40.42 points or 0.17%. Dow Jones ended the day, up by 408.44 points or 0.86%. S&P 500 ended the day, up by 20.35 points or 0.30%. US markets remain expectant of a 25 basis point rate cut by US Federal Reserve in its meeting next week.

Euro Stoxx 50 ended the day, yesterday, up by 8.39 points or 0.15%. Dax ended the day, down by 17.15 points or 0.072%. FTSE 100 ended the day, down by 9.73 points or 0.10%.

Nikkei once again shooting up today

Nikkei is once again shooting up today. At 8:45 a.m. IST, 4^th December, 2025, it is up by 731.56 points or 1.47%. South Korean Kospi is down by 40.67 points or 1.01%. Hang Seng is up by 57.29 points or 0.22%. Shanghai composite is down by 0.60 points or 0.015%.

Rupee slide hits Indian market sentiments

Indian equity markets may see another day in red today. The depreciation in rupee to above Rs 90/ dollar mark has hit market sentiments. Companies that use imported raw materials in their products, like consumer electronics, may see their raw material prices go up because of this depreciation. India’s imports will become dearer with a weaker rupee. This can have an impact on pushing inflation rate upward. The RBI may also choose to keep interest rate unchanged in its monetary policy announcement tomorrow. Reducing interest rate runs the risk of putting further downward pressure on rupee. FICCI has however said that the industry is expecting a 25 basis point rate cut from the central bank.

A trade deal with US can turn Indian market sentiments positive

Market sentiments can now turn positive only if a trade deal with US is announced. A trade deal that lowers US tariffs on Indian goods would also prevent further decline in the value of rupee against the dollar. Rupee has depreciated by more than 5% against the dollar in the past one year.

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Source: Dow Jones