“The currency remains range-bound with participants awaiting fresh triggers from the Union Budget due on 1Feb26, while the US Fed’s policy decision later this month is expected to add volatility. The rupee is likely to trade between 90.45 and 91.45 in the near term,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
So far this month, foreign portfolio investors (FPIs) have withdrawn ₹32,253.55 crore from Indian equity market, with gross purchases of ₹1,53,046.26 crore offset by gross sales of ₹1,85,299.81 crore. On January 20 alone, FPIs were net sellers to the tune of ₹2,938.33 crore.
In contrast, domestic institutional investors (DIIs) remained net buyers, helping cushion the impact of foreign outflows. Month-to-date, DIIs have infused a net ₹41,976.70 crore into equities, with gross purchases of ₹2,24,667.96 crore against sales of ₹1,82,691.26 crore. On January 20, DIIs recorded net purchases of ₹3,665.69 crore.
The sustained selling in domestic equity market also weighed on rupee movement. On Tuesday, Indian equity markets witnessed sharp selling, with benchmark indices Sensex and Nifty sliding to their lowest levels in over three months as global risk sentiment deteriorated amid rising geopolitical tensions and weak overseas cues. The Nifty and Sensex settled lower by 1.38% and 1.28% at 25,232.50 and 82,180.47, respectively. Investor wealth took a significant hit, with the total market capitalisation of BSE-listed companies shrinking by nearly ₹9.4 lakh crore to ₹455.82 lakh crore.
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