FX.co ★ BSE Rises After RBI Decision but Points to Weekly Decline

The BSE Sensex experienced an uptick, adding 303 points or 0.4% to reach 85,569 during Friday morning's trading session. This continues the upward momentum from the previous day, catalyzed by the Reserve Bank of India's (RBI) decision to lower key repo rates by 25 basis points and the revision of GDP and inflation forecasts. The central bank adjusted its GDP growth forecast for the fiscal year 2025/26 to 7.3%, an increase from their earlier prediction of 6.8%. Meanwhile, the headline inflation projection was lowered to 2.0% from 2.6%, maintaining it comfortably within the 2%-6% target range. Market sentiment was further buoyed by anticipation of the Federal Reserve's potential interest rate cuts in the upcoming week. Similarly, the Nifty 50 index rose by 0.4%, surpassing the 26,100 mark. The majority of sectors saw positive performance, with the technology sector leading the charge with a 1.2% gain, followed by financial services, automobiles, and banking stocks. Among the top performers were Bajaj Finance, which advanced 2.0%, Infosys with a 1.7% increase, HCL Tech rising by 1.4%, Bajaj Finserv up by 1.3%, and TCS gaining 1.1%. Despite these gains, the index appears poised to close the week with a 0.2% decline, marking its first drop in four weeks.