Nifty posts best day in four months as oil prices ease, rupee strengthens

India's Nifty index logged its best trading day in four months, buoyed by easing crude oil prices and a strengthening rupee that lifted investor sentiment across the market.

The improved sentiment was driven by softer international oil prices, which helped ease inflationary concerns, while the rupee's strength made Indian equities more attractive on valuations. These factors combined to support broad-based buying interest in equities.

However, market analysts cautioned that the rally may face headwinds from continued foreign investor outflows. The outflow pressure could limit the upside potential for Indian indices in coming sessions, tempering expectations of sustained gains from current levels.