Indian stock markets ended Friday in the red as the rupee crashed past 96 against the dollar to a fresh record low. Brent crude shot up near $107 a barrel on renewed US-Iran tensions, pushing the Nifty and Sensex to nearly 3 per cent weekly losses. Dalal Street now braces for a jittery Monday open.
Sensex, Nifty End Lower to Cap a Tough Week
The Nifty 50 slipped 46.10 points, or 0.19 per cent, to close at 23,643.50. The Sensex shed 160.73 points, or 0.21 per cent, to settle at 75,237.99.
Both benchmarks logged a weekly drop of close to 3 per cent. This marks the second weekly slide in three weeks for Indian equities, as geopolitical anxiety refused to loosen its grip on investor sentiment.
The day started on a softer note tracking weak Asian cues. Selling pressure picked up after the rupee crossed the 96 mark, triggering broad-based risk aversion across banking, auto and oil-linked names.
There was one small flicker of relief. Foreign Institutional Investors turned net buyers worth Rs 187.46 crore on Thursday after weeks of heavy selling, while domestic institutions chipped in Rs 684.33 crore on the same day.
Rupee Crashes Past 96 to Fresh All-Time Low
The Indian rupee opened weak at 95.86 and tumbled to an intraday record low of 96.14 against the US dollar. It later recovered some ground to close at 95.86 (provisional), which is still a fresh all-time closing low.
The local currency has now lost more than 6 per cent in 2026. In the past six trading sessions alone, it has shed nearly 2 per cent under the weight of the Iran war.
The dollar index climbed 0.34 per cent to 99.15 on Friday. Strong US retail sales and steady labour market data have trimmed market bets on aggressive Federal Reserve rate cuts in the coming months.
Brent Crude Near $107 as Hormuz Stays Shut
Brent crude jumped 3.14 per cent to USD 109.04 a barrel in futures trade. West Texas Intermediate hovered near $102 a barrel, with both benchmarks set for a weekly gain of about 5 per cent.
The Strait of Hormuz has been effectively closed since late February. Roughly 20 per cent of the world’s seaborne oil and a big chunk of global LNG flow through this narrow waterway off the Gulf coast.
US President Donald Trump described the Iran ceasefire as “on massive life support” after rejecting Tehran’s latest peace proposal. The remark sent jitters through global markets and pushed fresh safe-haven dollar demand.
Brent has now surged about 51 per cent since the conflict erupted on February 28. The International Energy Agency has warned that the global oil market could stay materially undersupplied through October, even if the war ends next month.
Sectoral Action: Media Shines, Banks Bleed
On the sectoral front, Nifty Media topped the chart with a sharp gain. Defensive pockets joined the party, while cyclicals took a beating.
| Sector | Move |
|---|---|
| Nifty Media | +2.13% |
| Nifty IT | +0.56% |
| Nifty FMCG | +0.46% |
| Nifty Auto | Marginally higher |
IT stocks drew strength from a record overnight close on the Nasdaq, which crossed 26,635. Heavyweights like Infosys and TCS recovered some lost ground after a brutal stretch of selling earlier in the week.
The pain was visible elsewhere. Private banks, PSU banks, oil and gas and most auto names bore the brunt of the selling, dragging the broader market mood lower.
What the Currency Slide Means for Indian Households
A weaker rupee makes everything India imports costlier. From smartphones and crude oil to edible oil and electronics, the squeeze will filter through to family budgets in the weeks ahead.
The pinch has already started. State-run fuel retailers hiked petrol and diesel prices by around Rs 3 per litre across Delhi, Mumbai and other major metros on Friday, the first such increase in four years.
- India imports over 90 per cent of its crude oil needs
- Forex reserves stood at $690.69 billion as of May 1, down from $728.49 billion at end-February
- April exports rose 13.78 per cent to USD 43.56 billion, while imports climbed 10 per cent
- Trade deficit widened to USD 28.38 billion in April
- Moody’s cut India’s 2026 GDP growth forecast by 0.8 percentage points to 6 per cent
The government has already raised customs duty on gold and silver imports from 6 per cent to 15 per cent in a bid to protect forex reserves. Prime Minister Narendra Modi has urged citizens to conserve fuel and embrace work-from-home wherever possible.
“Whenever uncertainty rises globally, the dollar usually becomes the market’s preferred safe place. For now, the rupee remains caught between policy support at home and global pressure from oil, inflation and the dollar abroad.”
Amit Pabari, Managing Director, CR Forex Advisors
Trump and Chinese President Xi Jinping wrapped up their three-day Beijing visit on Friday, calling the talks “historic” and “landmark”. However, no concrete deal on the Iran war or US-China trade frictions was announced, leaving markets without the breakthrough they were hoping for.
Indian markets now head into a tense weekend with one big question hanging over them. Will crude finally cool down, or will the Hormuz crisis push the rupee deeper and squeeze household budgets even more? For millions of investors and middle-class families alike, the answer matters more than ever. Drop your thoughts in the comments below and tell us how the rising rupee and fuel costs are hitting your home this week.
