Market Brief: Rupee & Equity Update **February 26, 2026** The Indian Rupee showed resilience in Thursday's early session, strengthening by **10 paise** to reach **90.81** against the US Dollar. This movement follows a period of consolidation and reflects a cautious yet positive shift in local currency sentiment. A primary driver for the Rupee's gain is the cooling of the US Dollar index. Recent data, including stronger-than-expected corporate earnings in the US, has buoyed global risk appetite, leading to a marginal softening of the greenback across Asian markets. Capital Flows and Institutional Activity Foreign Institutional Investors (FIIs) have maintained a steady presence, providing essential support to the local unit. On February 25, FIIs were net buyers in the cash segment with an inflow of **₹2,991.64 crore**. Domestic Institutional Investors (DIIs) further bolstered this trend, recording a significant net purchase of **₹5,118.57 crore**. This synchronized buying activity highlights robust internal confidence in the Indian economy's trajectory for the 2026 fiscal year. Domestic Equity Performance The domestic equity markets opened on a firm note, with benchmark indices trading in green. The **NSE Nifty 50** surpassed the **25,500** mark, gaining approximately **0.29%** in early trades. The **BSE Sensex** rose by over **140 points**, trading near the **82,418** level. Market leadership is currently driven by the IT and Banking sectors. Specifically, the Nifty IT index outperformed with a nearly **1%** jump, ending a five-day losing streak. External Pressures and Commodity Trends Despite the local gains, global variables continue to act as a ceiling for the Rupee. Brent crude oil prices have edged up to approximately **$71.04** per barrel. Investors are closely monitoring the upcoming nuclear talks in Geneva. Geopolitical uncertainties and the potential for supply disruptions in the Middle East maintain a "risk premium" on energy prices, which typically puts pressure on the Indian trade deficit. Economic Outlook The broader economic backdrop remains supportive. India's GDP growth for FY26 is projected at **7.4%**, backed by a historic low inflation average of **1.7%** in the previous quarters. With foreign exchange reserves standing robust at over **$701 billion**, the Reserve Bank of India possesses significant buffers to manage currency volatility. While the immediate outlook for the Rupee is positive, it remains sensitive to fluctuations in global energy markets and US interest rate signals.