Market Brief: India Markets & Rupee Performance The Indian Rupee remained virtually unchanged on February 25, 2026, closing at **90.96** against the U.S. Dollar. This follows a session of tight range-bound trading where the local unit hovered between **90.89** and **90.97**. Modest early gains were erased as a combination of rising global crude prices and maturity-linked dollar bids in the non-deliverable forward (NDF) market offset steady foreign fund inflows. The Reserve Bank of India (RBI) continues to maintain a strong presence in the currency market. Central bank intervention was visible near the **91.00** level, effectively preventing the rupee from sliding past this psychologically significant threshold. Market participants noted that the RBI’s active management in both spot and NDF markets has curtailed speculative short positions, keeping the currency stable despite global volatility. Key Market Indicators Domestic equity markets staged a notable recovery today, rebounding from previous losses. The BSE Sensex surged over **700 points** to reach an intraday high of **82,958**, while the NSE Nifty 50 reclaimed the **25,650** mark. This rally was largely driven by a **3%** bounce in the IT sector, which had recently faced a sharp correction of nearly **20%** over the past month. * **Sensex:** 82,958 (Intraday High) * **Nifty 50:** 25,650 (Level Reclaimed) * **10-Year G-Sec Yield:** 6.67% * **Brent Crude:** $71.74 per barrel Global oil benchmarks remain a primary concern for the rupee's trajectory. Brent crude futures rose above **$71**, driven by ongoing geopolitical tensions. While higher energy costs typically weigh on the rupee, recent Indo-US trade developments—including a reduction in effective tariffs on certain energy-related imports—have provided a crucial buffer for the domestic economy. Capital Flows and Monetary Policy A significant shift in investor sentiment is underway as Foreign Institutional Investors (FIIs) turned net buyers in February 2026, breaking a seven-month streak of selling. FIIs have injected approximately **₹1,370 crore** into the cash segment so far this month. Additionally, domestic institutional liquidity remains robust, with DIIs contributing over **₹3,161 crore** in recent sessions to support market depth. The monetary environment remains stable following the RBI’s decision to hold the repo rate at **5.25%** earlier this month. With headline CPI inflation projected at a benign **2.1%** for the current fiscal year and **2.75%** recorded in the latest January data, the central bank has maintained a neutral stance. This provides the RBI with the flexibility to prioritize growth, currently projected at **7.4%** for 25-26, while ensuring the rupee does not face disorderly drawdowns. Volatility remains elevated, with the India VIX rising nearly **40%** year-to-date. Traders are closely monitoring the upcoming **₹32,000-crore** government bond auction and global tariff headlines for further directional cues. For now, the combination of central bank vigilance and a resurgence in foreign buying is keeping the rupee anchored within the **90.70 to 91.20** range.