FX.co ★ Sensex Closes at Over 1-Week High

On Friday, India's BSE Sensex climbed approximately 0.5%, closing at 85,712.4 — its highest level in over a week. This extension of gains follows the previous session's positive momentum as traders responded favorably to the Reserve Bank of India's (RBI) decision to cut interest rates by 25 basis points. This marked the RBI's first reduction in its key benchmark interest rate in six months, coupled with liquidity-enhancing measures, as a stable price environment allowed further support for economic growth. Financial and automotive sectors, which are sensitive to interest rate changes, led the surge, with notable performers including SBI, up by 2.5%, Bajaj Finserv rising 2.1%, Bajaj Finance increasing 1.8%, and Maruti Suzuki also gaining 1.8%. Additionally, IT stocks with significant exposure to the US market advanced amid increasing speculation of a potential Federal Reserve rate cut in the coming week. Despite the day's gains, the index remained flat for the week.