India stocks recover late as rupee support and bank inflows offset global yield anxiety

Indian equities staged a late recovery after a shaky start, with headline market sentiment helped by Reuters’ report that the central bank has stepped up rupee support and by signs of strong NRI deposit inflows. Reuters noted the RBI’s firepower may be stronger than expected, while Moneycontrol reported FCNR(B) inflows crossing $100 billion, well above the central bank’s earlier estimate. At the same time, global rate anxiety remained a drag, with The Economic Times flagging concern that a move in the US 10-year yield toward 5% could pressure risk assets. Moneycontrol said the Sensex recovered about 400 points from the day’s low and Nifty moved back above 23,900. The tone was constructive, but the session still reflected a market balancing domestic liquidity support against an uncertain external rate backdrop. Freshness note: this wrap is based on news flow and end-of-day mover data available on 2026-09-02. Reuters | Moneycontrol | The Economic Times