The BSE Sensex rose 266 points or 0.32% to close the week at 83,580 while the Nifty 50 gained 51 points or 0.20% to end the day at 25,693.
In his address, RBI Governor Sanjay Malhotra said the central bank’s inflation outlook remains comfortable, with CPI inflation for FY26 projected at 2.1%, according to Monetary Policy Committee. The central bank expects price pressures to stay broadly contained, reflecting stable domestic conditions and manageable demand trends.
In today’s session, cigarette makers including ITC, Godfrey Phillips and VST Industries surged up to 13% after reports indicated companies had raised prices following the recent tax hike, passing on higher costs to consumers. The rally was also supported by value buying at lower levels after a sharp correction triggered by the cigarette taxation overhaul announced on December 31, which came into effect from February.
The broader market, represented by the Nifty Midcap and Smallcap 100 indices, ended 0.2% and 0.3% lower, respectively.
Expert views
Indian equity markets traded with a cautious, range-bound bias today as investors digested the central bank’s decision to keep interest rates unchanged, reinforcing its preference for stability amid improving global trade visibility following recent U.S. tariff adjustments. Sentiment, however, drew support from regulatory clarity after the RBI indicated that banks would be permitted to lend to REITs, enhancing long-term funding visibility for the real estate and credit ecosystem. On the domestic front, support also came from a slight recovery in the Indian rupee, aided by moderated corporate dollar demand, which helped ease near-term currency concerns, Ponmudi R, CEO of Enrich Money said.
Global Markets
Global markets retreated on Friday as a Wall Street selloff spilled across regions, with volatility hitting precious metals and cryptocurrencies while AI-related concerns weighed on equities. The MSCI All-Country World Index recovered from intraday lows to trade near flat, but it still remained on track for its worst weekly performance since mid-November, down about 1.6%.European markets also opened lower as a busy earnings week drew to a close. The pan-European Stoxx 600 slipped 0.37% in early trade, with most major indices and sectors in negative territory. Share price movements this week were largely driven by corporate updates from major names including LVMH, Novo Nordisk, Shell and several large banking groups, while Friday’s earnings calendar appeared relatively light.
In Asia, equities weakened, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 0.7% and heading for a second consecutive day of losses. Japanese markets bucked the trend, with the Nikkei 225 rising 0.8% ahead of the upcoming election, offering some support amid broader regional caution.
Crude impact
U.S. crude futures extended losses on Friday and were headed for their first weekly decline in several weeks, as easing concerns over Middle-east supply disruptions shifted investor focus to the outcome of U.S.-Iran nuclear talks scheduled in Oman later in the day. Brent crude futures fell 50 cents, or 0.74%, to $67.05 per barrel at 0102 GMT after settling 2.75% lower in the previous session.
Meanwhile, U.S. West Texas Intermediate crude slipped 52 cents, or 0.82%, to $62.77 per barrel, following a 2.84% drop on Thursday. The continued decline reflects cautious market sentiment as traders assess potential developments from the negotiations and their impact on global oil supply.
Rupee vs Dollar
The Indian rupee closed 0.33% lower at 90.6550 per U.S. dollar, compared with the previous close of 90.3550.
The Indian rupee advanced 1.4% for the week, marking its strongest weekly gain since January 2023.
(With inputs from agencies)