FX.co ★ Sensex Closes Slightly Down

India’s BSE Sensex surrendered early gains to end about 0.2% lower at 74,243 on Friday, as investors weighed the RBI’s cautious outlook, continued foreign investor outflows, persistent tensions in the Middle East, and lingering uncertainty over US–Iran negotiations.

The Reserve Bank of India unanimously kept the repo rate unchanged at 5.25% and retained its “neutral” policy stance, while raising its inflation forecast and trimming its GDP growth projection for the current financial year. At the same time, the central bank announced measures to encourage greater foreign investor participation and reduce tax-related frictions in the bond market.

At the sector level, weakness in technology and metal stocks was largely offset by gains in financials and select index heavyweights. Technology shares stayed under pressure throughout the session, led by TCS (-1.9%) and Tech Mahindra (-1.2%). Other major decliners included Trent (-2.2%), Tata Steel (-1.8%), NTPC (-1.3%), and Bharti Airtel (-1.1%).