Wed Jan 08 12:04:41 UTC 2025: ## Rupee Hits Record Low as Indian Stock Market Falters

**Mumbai, January 8, 2025** – The Indian rupee plummeted to a record low of ₹85.87 against the US dollar today, extending its decline for the second consecutive day. This fall is attributed to rising crude oil prices, a strengthening US dollar, and lackluster sentiment in the domestic equity markets. Foreign fund outflows and concerns over the government’s lowered economic growth projection further dampened investor confidence.

The benchmark Nifty 50 index closed down 0.16% at 23,668, while the Sensex experienced similar weakness. While 1,339 stocks advanced on the BSE by 3 pm, 2,608 declined, reflecting a broadly negative market trend. 142 stocks hit 52-week highs, and 98 reached 52-week lows.

Despite the overall market weakness, some positive developments emerged. Afcons Infrastructure secured a ₹1,084.54 crore contract from the Ministry of Defence, while Adani Ports and Special Economic Zone Ltd. improved its ranking in the S&P Global Corporate Sustainability Assessment. Several companies announced new product launches, bonus issues, and dividend announcements. In the pharmaceutical sector, Suven Life Sciences saw its stock zoom after commencing a Phase 1 clinical trial.

However, several stocks experienced significant losses, including Dixon (-7.30%), Kalyan Jewellers (-5.08%), and Blue Star (-4.07%).

The banking sector also faced headwinds. Analysts predict higher credit costs in the first half of 2025, though normalization is expected in the second half. A potential repo rate cut by the Reserve Bank of India is anticipated in February or April.

Several mutual funds and investment firms offered commentary on the market outlook, with many expressing a cautious stance until Q3 FY25 earnings and valuations become clearer. Positive analyst commentary and target price adjustments were noted for several stocks including ITC, Bharti Airtel, and Reliance Industries, among others. However, negative outlooks were also offered for certain companies.

The day’s trading saw a number of IPOs and corporate actions, including acquisitions, bonus share announcements, and planned capital raises. The fluctuating rupee and downward trend in the broader market dominated the day’s news. Concerns remain regarding the projected slowdown in GDP growth.

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