@immortal ✓

The sharp depreciation of the Indian rupee has emerged as one of the major factors behind the recent weakness in the Indian stock market, adding pressure to an already fragile investment environment.

The rupee has remained under severe pressure against the US dollar, with the currency trading around ₹95–₹96 per dollar in recent months. On October 28, the rupee was around ₹95.19 per dollar as elevated crude-oil prices continued to weigh on India's external position.

The impact on equities is significant because a weaker rupee changes the equation for both domestic companies and foreign investors.

Foreign investors face a double loss

For overseas investors, the depreciation of the rupee can turn a decline in Indian stocks into an even larger loss when their investments are converted back into dollars.

This has contributed to sustained foreign portfolio selling. The Sensex had fallen about 14.9% in rupee terms during 2026 as of September 30, but its decline exceeded 20% in dollar terms. The Nifty's decline was also considerably larger when measured in dollars.

The result is a vicious cycle: foreign investors sell Indian equities, the demand for dollars increases, the rupee comes under additional pressure, and the weaker currency further reduces the attractiveness of Indian assets for international investors.

Oil makes the problem worse

India imports almost 90% of its crude-oil requirements. Consequently, a combination of a weak rupee and expensive crude can be particularly damaging.

When oil prices rise, Indian companies and consumers ultimately face higher costs. A weaker rupee makes imported crude even more expensive in domestic currency. This can increase inflationary pressure, squeeze corporate margins and reduce expectations for economic growth.

Recent market weakness has coincided with elevated crude prices and geopolitical tensions in the Middle East. On October 28, Brent crude was around $115.50 a barrel following an attack on a Saudi Arabian refinery, while the Nifty declined 0.7%.

Foreign capital flight adds to the pressure

Rupee weakness cannot be viewed independently of foreign investment flows. Foreign investors have been reducing their exposure to Indian equities amid high US yields, expensive global energy and concerns about Indian corporate earnings.

Foreign portfolio investors sold approximately ₹3.16 trillion worth of shares through Indian stock exchanges during the first nine months of 2026, according to data reported by Mint.

The selling intensified in October, with FPIs withdrawing more than ₹31,000 crore during the first four trading sessions of the month.

Not every company loses from a weak rupee

The impact of rupee depreciation is not uniform.

Export-oriented companies, particularly in information technology and pharmaceuticals, can benefit because a greater portion of their revenues is earned in dollars. Conversely, airlines, oil-dependent businesses, companies reliant on imported raw materials and businesses carrying substantial dollar-denominated debt can face greater pressure.

Therefore, the rupee's decline does not automatically mean every Indian company becomes less valuable. The effect depends heavily on a company's revenue and cost structure.

The stock-market debacle has multiple causes

It would, however, be misleading to blame the entire market decline on the rupee.

Indian equities have simultaneously faced several headwinds: high global interest rates, elevated US Treasury yields, expensive crude oil, geopolitical uncertainty, foreign selling and concerns over corporate earnings and valuations.

The World Bank noted that the rupee's depreciation during FY2025-26 was associated with a widening merchandise trade deficit and net foreign investment outflows, although strong services exports, remittances and RBI intervention provided some support.

Thus, the relationship works in both directions: foreign selling can weaken the rupee, while a weaker rupee can encourage further foreign selling.

A dangerous feedback loop

The biggest concern for the Indian market is the possibility of a prolonged feedback loop:

Foreign outflows → weaker rupee → lower dollar returns → further foreign selling → weaker equities → declining investor confidence.

Domestic institutional investors, particularly mutual funds, have so far provided an important counterbalance to foreign selling. But continued currency weakness combined with high oil prices could make the market's recovery more difficult.

The Reserve Bank of India has already taken measures to contain pressure on the currency and support the foreign-exchange market.

The road ahead

The Indian economy remains considerably more resilient than the stock-market performance might suggest. But financial markets respond not only to economic growth; they respond to expectations, liquidity, currency movements and global risk appetite.

The rupee's depreciation has therefore become an important part of the Indian stock-market story in 2026. It may not have caused the entire debacle, but it has undoubtedly amplified the losses and made Indian equities less attractive to dollar-based investors.

Until the pressure from oil prices, foreign capital outflows and the dollar begins to ease, the rupee is likely to remain one of the most important indicators for investors watching India's next market move.

A new investigation has highlighted the growing role of satellite reconnaissance in the Middle East conflict. According to reporting by the Associated Press, Russian government and military reconnaissance satellites repeatedly passed over strategic Saudi targets shortly before missile and drone attacks.
One of the most significant cases involved Prince Sultan Air Base near Riyadh. Earlier reporting found that Russian satellites surveyed the base days before an Iranian strike in March, while subsequent satellite activity reportedly assessed the damage.

Brazilian President Luiz Inácio Lula da Silva has secured a historic fourth presidential term, delivering a dramatic victory for the left after trailing his right-wing rival in the first round of voting.

Lula defeated Flávio Bolsonaro, son of former far-right president Jair Bolsonaro, in the October 25 runoff. Lula received about 51.8% of the valid vote, compared with 48.2% for Bolsonaro, winning by roughly 4.4 million votes.

A remarkable electoral turnaround

The result was particularly significant because Lula had finished behind Flávio Bolsonaro in the first round. Bolsonaro secured about 47% while Lula received around 45%, forcing the election into a runoff. Lula's subsequent turnaround is being described as unprecedented in Brazil's democratic presidential history.

The campaign changed considerably during those three weeks. Lula's team placed greater emphasis on the cost of living, social programmes and mobilising voters through both traditional street campaigning and social media. A WhatsApp mobilisation initiative reportedly attracted more than 10 million people, helping the left regain momentum online.

A victory for Brazil’s left

Lula remains one of the most prominent figures of the Latin American left. A former metalworker and trade-union leader, he first became president in 2003 and later returned to power in 2023.

His political identity has long been associated with workers' rights, poverty reduction, social welfare and a larger role for the state in economic development. Supporters argue that his governments helped reduce poverty and inequality, while critics continue to point to corruption scandals associated with the Workers' Party and concerns over public spending and economic management.

His fourth term therefore represents more than a personal political comeback. It is also an important victory for Brazil's progressive forces at a time when several Latin American countries have moved toward the political right.

A setback for the Bolsonaro movement

The defeat is a major setback for Brazil's conservative movement. Flávio Bolsonaro had hoped to build on his father's political legacy and return the Bolsonaro family to the presidency.

The younger Bolsonaro, however, has not accepted the result and has questioned the election process, including a decision that extended voting hours in some areas because of transportation and weather problems. Brazil's electoral authorities nevertheless declared Lula the winner.

What Lula’s fourth term could mean

Lula will now face a difficult governing environment. Brazil remains politically polarised, while economic pressures, public debt, living costs and a powerful conservative presence in Congress will limit the government's room for manoeuvre.

Internationally, the victory could reinforce Brazil's position as an independent power between the United States, China and the broader Global South. Lula has consistently promoted Brazil's role in multilateral organisations and in the BRICS grouping, making his re-election significant beyond Latin America.

For the left, however, the immediate message is simpler: Lula was given another chance by Brazilian voters.

After losing the first round and facing a strong conservative challenge, the veteran politician managed one of the most remarkable comebacks in Brazil's modern electoral history. His fourth term will test whether the popularity and political resilience that carried him back to the presidency can be translated into effective governance in an increasingly divided Brazil.

Arnab Cyclone Landfall is completed with heavy rainfall in coastal Andhra Pradesh and Parts of Odisha.

Few casualty has been reported in Andhra Pradesh. Besides this damages of houses are also been reported.