FX.co ★ India Stocks Set to Close Week on Low Note

The Sensex dropped by 386 points, or 0.5%, to stand at 82,928 during Friday morning's trading session, marking an ongoing decline. Similarly, the Nifty 50 decreased by 0.5%, settling around 25,500. This dip came after the Reserve Bank of India (RBI) decided to maintain its policy rate at 5.25%, following a 25 basis point cut in the December meeting. The overall market mirrored a lackluster performance on Wall Street overnight, largely driven by a continued downturn in the tech sector. Nonetheless, recent US–India trade agreements and government fiscal strategies aimed at enhancing manufacturing and exports cushioned the impact of these losses. Moreover, the RBI’s upward adjustment of its GDP growth projection to 7.4% from 7.3% for the fiscal year 2025–26 helped prevent more substantial declines. Most sectors experienced downturns, particularly the technology sector, which saw a retreat of 2.1% amid global pressures, led by declines in TCS (-2.4%) and Tech Mahindra (-2.1%). Banking and automotive stocks also witnessed slight decreases, with notable underperformers including IndusInd Bank (-2.0%) and SBI (-1.6%). For the week, the index is poised for a 0.8% decline after recording gains in the previous week.