Indian equity markets traded with modest gains on Friday, with the Sensex rising about 50 points and the Nifty staying above the 23,400 mark after the Reserve Bank of India (RBI) kept its key policy rate unchanged. The central bank also maintained its neutral policy stance, providing stability to investors amid global economic uncertainties.
The RBI revised its macroeconomic projections, raising its inflation forecast while slightly lowering its growth estimate for the current financial year. It also announced measures aimed at supporting the rupee and attracting foreign investment into government securities. These announcements boosted investor confidence and supported sentiment across banking and financial stocks.
During the session, the Sensex hovered around 74,800, while the Nifty remained above 23,400. Banking stocks emerged as the biggest gainers, with both public sector and private lenders attracting buying interest. Investors welcomed the RBI’s decision to leave borrowing costs unchanged, which is expected to support credit growth and economic activity.
Market sentiment was further aided by expectations of stronger foreign capital inflows. Proposed steps to ease tax-related concerns for overseas investors in government securities are expected to improve liquidity and strengthen the rupee, analysts said.
At the same time, investors remained cautious about global developments, including crude oil price movements and geopolitical tensions in the Middle East. Rising oil prices and international uncertainties had weighed on markets earlier in the week, but easing concerns helped domestic equities recover.
Among stocks in focus were Tata Steel, ICICI Bank, Tata Motors, Vedanta and Maruti Suzuki. While banking counters supported the market, some metal and auto stocks witnessed intermittent profit-booking as traders assessed company-specific developments and broader economic signals.