Indian equity benchmarks ended higher on Friday, supported by easing geopolitical tensions in the Middle East and positive developments in India-US trade discussions. Prime Minister Narendra Modi and US President Donald Trump have reviewed the ongoing trade negotiations between India and the United States. After making a negative start, soon markets turned positive and remained higher throughout the day, as traders took some support after British Prime Minister Keir Starmer stated that India is on track to become the third largest economy by 2028 and the UK is perfectly placed to be a partner in this journey.

Some of the important factors in trade:

India's manufacturing sector poised for strong growth, expansion: Traders took some support as the Federation of Indian Chambers of Commerce and Industry (FICCI) in its latest survey has said that India's manufacturing sector is poised for strong growth and expansion, with 87 per cent of respondents reporting higher or same production levels for the September quarter (Q2FY26).

India aims to achieve economic growth of $5 trillion by 2027: Some support came as the Union Minister for Road Transport and Highways, Nitin Gadkari, reiterated the Government’s goal of achieving a $5 trillion economy by 2027. He also highlighted the national vision of making India a developed nation by 2047.

Foreign fund inflows: Sentiments remained upbeat as Foreign institutional investors (FIIs) were net buyers of shares to the extent of Rs 1,308.16 crore on Thursday. 

Global front: European markets were trading in red on Friday, with deepening concerns about an AI bubble and renewed worries about the political situation in France keeping investors on edge. Asian markets ended mostly in red amid concerns about the ongoing U.S. government shutdown, which entered its ninth day with no end in sight.

The BSE Sensex ended at 82500.82, up by 328.72 points or 0.40% after trading in a range of 82072.93 and 82654.11. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.36%, while Small cap index up by 0.59%. (Provisional)

The gaining sectoral indices on the BSE were Realty up by 1.72%, Telecom up by 1.13%, Healthcare up by 0.99%, Utilities up by 0.98% and Bankex up by 0.97%, while Metal down by 0.86%, Basic Materials down by 0.28% and Oil & Gas down by 0.13% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 2.22%, Maruti Suzuki up by 1.72%, Axis Bank up by 1.25%, NTPC up by 1.06% and Adani Ports and Special Economic Zone up by 1.03%. On the flip side, Tata Steel down by 1.47%, TCS down by 1.09%, Tech Mahindra down by 0.62%, Titan Company down by 0.56% and Bajaj Finserv down by 0.33% were the top losers. (Provisional)

Meanwhile, the Crisil Ratings in its latest report has said that volume growth of complex fertilisers is seen slowing to 2-4% this fiscal (FY26) after a strong 9% print last fiscal (FY25) because of availability issues with imported fertilisers, ongoing geopolitical disruptions and high-base effect. It stated that supply disruptions have also led to a rise in raw material prices, which in turn may increase the subsidy requirement. However, it said credit profiles are seen stable because of steady profitability, expected additional subsidy allocation and its timely disbursement.

Complex fertilisers account for a third of the overall domestic fertiliser consumption of which nitrogen phosphorus potassium (NPK) grades comprise 55 per cent and di-ammonium phosphate (DAP) comprises the rest. While NPK is largely indigenously produced, around 60 per cent of the DAP requirement is met via imports. Further, the report stated that key raw materials for both NPK and DAP are primarily imported due to limited domestic reserves. Given such high import dependence, sales growth as well as the mix is primarily influenced by the supply side factors.

In FY25, geopolitical uncertainties, including export curbs by China, which accounts for a third of India's imports, impacted DAP availability globally. This led to a surge in imported DAP prices making such imports unviable. Meanwhile, domestic manufacturers prioritised NPK production, which is fungible with DAP production, due to better cost economics. This impacted the supply of DAP, which saw a steep decline of 12 per cent on year in volumes, while NPK volumes surged 28 per cent.

On the high base of last fiscal, the NPK volumes are expected to grow 4-6 per cent this fiscal, supported by an adequate monsoon. In contrast, DAP volumes are expected to remain flat as prices remain high, though availability is expected to improve. Crisil Ratings Director Anand Kulkarni said ‘This will be supported by additional special compensation for DAP imports by the government, alternative arrangements such as a long-term agreement with Saudi Arabia, and easing trade tensions with China. Over the rest of this fiscal, NPK demand is expected to normalise as the trend of DAP degrowth reverses with increased availability.’

The CNX Nifty ended at 25285.35, up by 103.55 points or 0.41% after trading in a range of 25156.85 and 25330.75. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 3.63%, SBI up by 2.19%, Maruti Suzuki up by 1.87%, Bajaj Auto up by 1.51% and Dr. Reddy's Lab up by 1.44%. On the flip side, Tata Steel down by 1.46%, TCS down by 1.10%, HDFC Life Insurance down by 0.74%, Titan Company down by 0.72% and JSW Steel down by 0.64% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 20.55 points or 0.22% to 9,488.85, 10 Germany’s DAX lost 59.95 points or 0.24% to 24,551.30 and France’s CAC fell 12.26 points or 0.15% to 8,029.