It’s playing out against a far more dramatic backdrop. The Indian equity market is at a crossroads: the Nifty is tantalisingly close to its all-time high, but the rupee’s plunge to a lifetime low near 89.5 has disrupted the bullish rhythm. As foreign investors turned net sellers and forex volatility spiked, the coming sessions will test whether the rally can withstand currency-driven headwinds.

The rupee crashed to 89.49 against the U.S. dollar on Friday, breaching its previous all-time low of 88.80. The 0.9% single-day fall — its steepest since May — was triggered by portfolio outflows, uncertainty over a US–India trade deal, and what appears to be the RBI stepping back from defending key levels. FIIs offloaded equities worth Rs 1,700 crore on Friday alone, underscoring how rupee weakness erodes dollar-adjusted returns.