By Our Business Correspondent
Indian equity benchmarks ended higher on Friday, supported by positive global cues, easing crude oil prices and renewed optimism over diplomatic progress between the United States and Iran. Investor sentiment also received a boost after the Reserve Bank of India (RBI) approved a record surplus transfer of ₹2.87 lakh crore to the Central Government for FY26.
The NSE Nifty50 closed above the crucial 23,700 level after touching an intraday high of 23,835.65, while banking and financial stocks led the market rally. However, late-session profit booking at higher levels restricted gains, with healthcare and pharma shares witnessing selling pressure.
The BSE Sensex rose 231.99 points, or 0.31 per cent, to settle at 75,415.35, while the Nifty50 gained 64.60 points, or 0.27 per cent, to close at 23,719.30.
Market participants remained encouraged by the decline in Brent crude prices towards the $105-per-barrel mark from recent highs near $110, easing concerns over imported inflation and India’s current account outlook. Nonetheless, analysts said investor sentiment continued to remain cautious amid persistent foreign institutional investor (FII) outflows and uncertainty surrounding global bond yields.
Broader market performance remained mixed. The BSE MidCap index advanced 0.11 per cent, while the SmallCap index slipped 0.26 per cent. Market breadth stayed marginally positive, with advancing stocks slightly outnumbering declining shares on the BSE.
RBI Transfers Record Surplus to Government
A major trigger for market sentiment came from the RBI’s decision to transfer a record surplus of ₹2.87 lakh crore to the Centre for FY26, marking a 6.6 per cent increase over the previous year.
The decision was taken during the 623rd meeting of the RBI Central Board chaired by Governor Sanjay Malhotra in Mumbai. The central bank also approved its annual accounts and reviewed domestic and global economic conditions.
RBI’s gross income registered a sharp 26.42 per cent year-on-year rise, while net income before risk provisioning climbed to ₹3.96 lakh crore. The RBI balance sheet expanded over 20 per cent to ₹91.97 lakh crore as of March 31, 2026.
Rupee Strengthens, Bond Yields Ease
In the currency market, the rupee appreciated against the US dollar and traded at 95.6825 compared with the previous close of 96.3650. Bond yields softened, with the benchmark 10-year government bond yield easing to 7.081 per cent.
Gold prices remained under pressure, with MCX gold futures slipping 0.30 per cent to ₹1,59,127 per 10 grams. Brent crude, however, rebounded modestly to $104.90 a barrel after recent declines.
Global Markets Track US-Iran Talks
Global investors closely tracked diplomatic developments between Washington and Tehran. Reports indicating progress in negotiations helped improve risk appetite across markets, although concerns persisted after indications that Iran may continue retaining its enriched uranium stockpile domestically.
European markets traded higher, while Asian equities largely ended in positive territory. Japan’s inflation data, which showed easing core inflation, reduced expectations of an immediate interest rate hike by the Bank of Japan.
Wall Street had closed at record highs overnight, supported by easing oil prices and optimism over geopolitical stability.
Banking Stocks Lead Rally
Private banking stocks emerged as the top gainers, lifting the Nifty Private Bank index nearly 1.5 per cent. Axis Bank, ICICI Bank, HDFC Bank and RBL Bank recorded notable gains amid improving risk appetite in financial counters.
Among individual stocks, Life Insurance Corporation of India gained after reporting a strong rise in quarterly profit, while 3M India rallied sharply following robust earnings and announcement of a special dividend.
GAIL (India) advanced despite reporting a decline in quarterly profit, while VA Tech Wabag gained on healthy revenue growth.
On the downside, Central Bank of India fell nearly 8 per cent after the government launched an offer-for-sale to divest its stake in the lender. Quick Heal Technologies also declined sharply after reporting wider quarterly losses.
Meanwhile, Maruti Suzuki India announced a price hike of up to ₹30,000 across models, citing higher input costs and inflationary pressures.
Analysts believe market direction in the coming week will depend on global crude oil trends, foreign fund flows, central bank commentary and progress in geopolitical negotiations involving the Middle East.
Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.