New Delhi: In a notable movement in the foreign exchange market, the Indian rupee appreciated by eight paise against the US dollar on Saturday, settling at ₹85.60. The rise is attributed to a combination of positive domestic cues and investor confidence bolstered by the Reserve Bank of India’s (RBI) recent policy stance. Experts note that a stable interest rate environment, improving foreign fund inflows, and upbeat macroeconomic indicators are lending support to the rupee’s strength.

This mild appreciation, though small, is seen as a continuation of a strengthening trend that reflects broader confidence in India’s economic fundamentals. The RBI's efforts to manage inflation, maintain liquidity, and stabilize the currency are being viewed positively by the markets. Analysts believe that the central bank’s balanced approach has created a favorable outlook for the rupee in the near term.

Simultaneously, Indian equity markets opened with significant gains, continuing the upward momentum observed in recent sessions. The BSE Sensex surged 480 points in early trade, reaching 82,669, while the Nifty index also climbed steadily. This rally is being fueled by strong performances across key sectors, including Information Technology (IT), media, and public sector banking.

Major contributors to the market's upward trajectory include blue-chip companies such as HDFC Bank, Bajaj Finance, Kotak Mahindra Bank, and State Bank of India (SBI). These financial giants have reported strong fundamentals and investor-friendly updates, which have increased market confidence in the financial services sector.

Particularly, public sector banks have seen renewed interest from investors, driven by expectations of improved asset quality and credit growth. The IT sector, riding on hopes of stable demand and favorable global outlook, also added momentum to the market rally.

However, the trading session also brought some downside in select counters. Shares of HDFC Life Insurance, SBI Life Insurance, ICICI Bank, and Bharti Airtel were seen under pressure, registering losses. While the broader market sentiment remains positive, analysts suggest that profit-booking and sector-specific challenges may be causing these temporary dips.

Overall, both currency and equity markets reflect a cautiously optimistic mood among investors. With the rupee showing signs of resilience and the stock market responding positively to both global and domestic cues, financial markets are poised for a dynamic phase ahead. Traders and analysts will be watching closely for upcoming economic data, RBI commentary, and global market trends to assess the sustainability of this momentum.