The Indian Stock Markets on Thursday opened with gains on the second consecutive session after facing the consecutive four sessions of losses. At the time of open, Sensex was up 461.92 points or 0.62 percent at 75,070.90, while the Nifty gained 172.25 points or 0.74 percent to 23,584.85.

GIFT Nifty trading around 23,550 in early trade, up 126 points or 0.54 percent, indicating a firm start for benchmark indices after Wednesday’s volatile but positive close.

The Indian rupee opened two paise lower, hovering near the all-time low. The rupee was trading at 95.73 against the dollar after ending the previous session at 95.71.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, "Continuous rupee depreciation is becoming a major macro threat for the economy. This year began with rupee at 90 to the dollar. Since then it has steadily depreciated to the present level of 95.70 to the dollar. If crude remains elevated for an extended period, rupee will move to 100. The other major drag on the rupee is the sustained selling by FPIs in the Indian market. Money is moving into markets like the US, Japan, South Korea and Taiwan which are doing very well. So long as the outperformance of these markets and the underperformance of India continues, FPIs will continue to sell, which, in turn, will further drag the rupee down."

"The situation will change only if the Strait of Hormuz is opened and crude price falls or the AI trade which is attracting FPI flows into the AI leaders ends. There is no clarity on when this will happen."

"Sustained depreciation of rupee has negative implications for the market. Imported inflation will rise. Margins of companies with petroleum based inputs will be impacted. Exporters will benefit. Pharmaceuticals will be a safe bet since the demand for pharmaceuticals is inelastic and this export sector will benefit from rupee depreciation. Textiles will also benefit. IT, though a potential gainer, will continue to be on the back foot due to the Anthropic shock."

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