The Indian rupee consolidated in a narrow range and settled for the day 2 paise lower at 85.52 (provisional) against the US dollar on Wednesday, as the support from positive domestic markets and weakness in dollar was negated by uncertainty over trade tariffs. INR ended the first trading session of the fiscal year 2025-26 on a flat note over Trump's reciprocal tariffs concerns and foreign fund outflows. A surge in crude oil prices also put pressure on the rupee. India's manufacturing sector growth also recovered the ground lost in February, picking up to its highest in eight months as a faster upturn in total sales underpinned a sharper increase in output.

Indian shares bounced back on Wednesday, after having suffered heavy losses in the previous session amid heightened uncertainty over U.S. President Donald Trump's tariff announcements expected later in the day. The Washington Post reported that White House aides had drafted a plan for a 20 percent tariff on most U.S. imports. The benchmark S&P/BSE Sensex jumped 592.93 points, or 0.78 percent, to 76,617.44, with banks and IT stocks leading the surge. The broader NSE Nifty index closed up 166.65 points, or 0.72 percent, at 23,332.35 while the BSE mid-cap and small-cap indexes surged 1.4 percent and 1 percent, respectively.

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