KUALA LUMPUR, May 21 (Bernama) -- Bursa Malaysia ended at its intraday low on Thursday as investor sentiment remained cautious amid ongoing foreign outflows, although the recent weakness may present bargain-hunting opportunities in fundamentally sound blue-chip counters. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.33 points, or 0.54 per cent, to 1,708.36, from yesterday’s close of 1,717.69. The benchmark index, which opened 3.74 points higher at 1,721.43, hit an intraday high of 1,722.50 in early trade before losing momentum for the rest of the day. Market breadth was negative, with losers outpacing gainers 656 to 508, while 565 counters were unchanged, 989 untraded and 32 suspended. Turnover fell to 3.49 billion units worth RM3.70 billion compared with 4.15 billion units worth RM4.29 billion on Wednesday.
Simple Summary
Rupee posts its biggest gain in over three years
Indian stocks jump the most since 2021
US slashes tariffs on Indian goods to 18%
Deal removes a major overhang on Indian markets
What Happened
Indian markets roared higher after US President Donald Trump announced a sharp tariff cut on Indian goods to 18%, down from 25%, while also scrapping an additional 25% levy tied to India’s purchases of Russian crude.
Market Reaction
Nifty 50 Index: +5% intraday (biggest jump since 2021)
Indian rupee: +1.2% to 90.46/USD, its strongest move in more than three years
The deal delivered much-needed relief to the rupee, which had been Asia’s worst-performing currency in January.
Why It Matters
India sends a large share of exports to the US
Tariffs had weighed on equities, currency and foreign inflows
The agreement lifts a key source of uncertainty for investors
“The deal finally provides some relief to the rupee and Indian markets more broadly,” said Mitul Kotecha of Barclays Bank plc.
What to Watch Next
Foreign portfolio investor (FPI) flows — whether selling pressure eases
Reserve Bank of India (RBI) actions if the rupee strengthens further
The 90-per-dollar level, seen as a near-term target by some strategists
Bottom Line
India’s tariff relief deal with the US has triggered a powerful confidence boost.
With the currency stabilising and equities rebounding sharply, investors are watching whether this momentum can translate into sustained foreign inflows.
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