The rupee strengthened slightly to around Rs 88.73 per US dollar on Tuesday.
Analysts said that the overall undertone remained positive, though investors continued to track developments around global fiscal and monetary policies. “The domestic market is holding firm on strong liquidity and corporate confidence, but near-term volatility cannot be ruled out,” a market strategist noted.
Across Asia, equity markets largely mirrored the positive tone. Japan’s Nikkei 225 jumped nearly 0.8%, driven by hopes of policy continuity and potential tax cuts under new political leadership. South Korea’s KOSPI surged 2.7%, while the MSCI Asia ex-Japan index rose about 0.4%, led by technology and semiconductor shares.
Markets in China and Hong Kong were mostly quiet or closed due to local holidays, keeping regional volumes subdued. Still, broader risk appetite improved following gains on Wall Street, where AI-linked and technology stocks continued to lift major U.S. indices to new highs.
Analysts said the market’s short-term direction will depend on U.S. economic data releases, the Federal Reserve’s rate guidance, and domestic earnings announcements. For now, both Indian and Asian markets appear set to maintain their positive bias, supported by global liquidity, strong fundamentals, and upbeat investor sentiment.