Indian stock markets maintained their upward momentum on Friday, extending gains following the Reserve Bank of India's (RBI) monetary policy announcement, which included measures to support the rupee. The 30-share BSE Sensex climbed 269.93 points to 74,629.94 in opening trade, while the 50-share NSE Nifty advanced 62.4 points to 23,478.95.
Market Performance
The positive opening came after the RBI kept the repo rate unchanged at 6.50% for the eighth consecutive time, as widely expected. The central bank also announced several measures to stabilize the rupee, including tweaks to foreign portfolio investment norms and increased flexibility in forex derivative markets.
Key Drivers
- RBI Policy Stance: The central bank maintained its neutral stance, focusing on inflation control while supporting growth.
- Rupee Support Measures: Steps to attract foreign capital and ease volatility in the currency market boosted investor sentiment.
- Global Cues: Positive trends in Asian markets also contributed to the upbeat mood.
Analysts noted that the market's resilience reflects confidence in the RBI's ability to manage macroeconomic stability. The Sensex and Nifty have been volatile in recent sessions due to global uncertainties, but the policy announcement provided a fresh impetus.
Sectoral Trends
Banking and financial stocks led the gains, with the Nifty Bank index rising over 0.5%. IT and pharma sectors also saw buying interest. However, auto and metal stocks faced some profit-booking.
The rupee opened stronger at 83.45 against the US dollar, compared to the previous close of 83.52, supported by the RBI's measures and positive equity markets.
Outlook
Market participants will now focus on global central bank decisions and domestic inflation data for further direction. The RBI's growth forecast for FY27 remains at 7.2%, reinforcing optimism about the economy's trajectory.
Overall, the combination of a status-quo policy and targeted rupee support measures has provided a fresh boost to Indian equities, with the Sensex and Nifty holding on to their gains in early trade.
