CHENNAI: Ending a week of significant volatility, Indian markets closed on Friday on a strikingly positive note. The Sensex surged around 1,046 points, finishing strong after snapping a three-day decline. The Nifty 50 also rebounded robustly, surpassing 25,100 and breaking past the 25,000 mark—closing near the day’s highs.
Key catalysts behind the rally included Reserve Bank of India (RBI) stimulus measures, favorable global tailwinds, a resumption of foreign investor inflows, and sectoral leadership.
The apex bank unveiled eased provisioning rules for infrastructure and project financing, effective from October 2025. This announcement boosted financial and PSU bank stocks.
The US Federal Reserve’s signaling of two interest-rate cuts in 2025 softened global financial conditions. Additionally, a weakening US dollar increased investor appetite for emerging-market stocks like India.
Foreign institutional investor (FII) buying gained momentum, further supporting market sentiment. Financial services led the gains with approximately 0.5% growth, while banking and auto stocks propelled the rally with gains of around 0.8% and 3%, respectively.
However, escalating tensions in the Middle East (Israel–Iran) capped upside potential, keeping investors cautious.
Key stocks driving positive momentum today included Bharti Airtel and Mahindra & Mahindra.
Bharti Airtel jumped 3%, touching a 52-week high amid strong investor confidence following the board’s approval of a ₹21,000 crore rights issue. Meanwhile, M&M rallied 3% after its defence arm secured a ₹1,350 crore order from the Ministry of Defence.
Power-financing companies such as Power Finance and REC also climbed about 3% following the RBI’s easing of provisioning rules for infrastructure lending.
Mid- and small-cap indices saw modest gains of around 0.5% as investors remained cautious amid volatility risks. Market breadth was positive, with the majority of sectoral indices advancing—auto, metal, banking, and PSU banks showing particularly strong performances.
However, geopolitical volatility in the Middle East remains a key overhang; any further escalation could weigh on both global and domestic sentiment.
Macro factors such as global commodity prices, foreign flows, and US Fed policy decisions will continue to influence market direction.