Indian equity benchmarks rose on Friday, driven by gains in financials after the central bank eased project financing rules, and closed the week higher despite ongoing tensions in the Middle East.
The Nifty 50 rose 1.29% to 25,112.4, while the BSE Sensex added 1.29% to 82,408.17.
Both the indexes snapped a three-session losing streak on Friday and gained about 1.6% for the week.
On the day, all the 13 major sectoral indexes advanced. Financials rose 1.3%, with state-run banks up 1.6%, after the Reserve Bank of India eased norms for infrastructure lending from October 2025.
The RBI lowered provisioning requirements for under-construction and operational projects, making funding cheaper for banks.
“The RBI’s move sparked a solid rally in financial stocks, giving the market a clear directional push,” said Vishnu Kant Upadhyay, assistant vice president – research and advisory at Master Capital Services.
Indian shares subdued as Middle East conflict saps risk appetite
“The return of foreign inflows in last few sessions and relentless domestic buying have injected strong liquidity, giving markets a solid lift,” he added.
Foreign investors have returned to Indian equities with net purchases over the last three sessions, while domestic institutional investors have kept the momentum going, snapping up stocks for an impressive 23 sessions.
The broader small-caps and mid-caps rose about 1% and 1.5%, respectively, on Friday.
Analysts caution Indian markets’ near-term trajectory hinges on Middle East tensions and their impact on oil and trade.
Overnight, Israel bombed Iranian nuclear sites, triggering retaliatory missile and drone strikes.
Sentiment remains fragile amid fears of escalation, with the White House saying President Trump will decide within two weeks on U.S. military support for Israel.
Among stocks, Mahindra & Mahindra gained 2.9% on Friday, extending its weekly gain to 6% — the highest among Nifty 50 constituents — after getting the competition regulator’s approval for its SML Isuzu acquisition.
Tata Motors fell 5% this week after Jaguar Land Rover trimmed margin guidance, triggering fiscal year 2025 earnings concerns among brokerages.
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