Indian equity benchmarks stayed in the positive territory throughout the day and ended over a per cent higher on Friday, propelled by buying in Auto, Capital Goods and Consumer Durables stocks and a positive trend in global equities. Investor sentiment improved amid hopes of further easing in the West Asia crisis ahead of US-Iran negotiations and lower crude prices.

Some of the important factors in trade: 

India well placed to handle energy shock, backed by strong buffers: The World Bank has said India is well placed to weather the current global energy shock with ample buffers, including high foreign exchange reserves, fiscal space and low inflation, which will support growth despite global headwinds.

ADB ups India’s FY27 growth forecast to 6.9%: The Asian Development Bank (ADB) has projected India's GDP growth to remain robust at 6.9 per cent in the current fiscal, and rise to 7.3 per cent in next fiscal driven by strong domestic demand, and supported by easing financing conditions and lower US tariffs on Indian goods.

India’s merchandise exports likely to register fall of 2-3% in FY26: Federation of Indian Export Organisations (FIEO) said India’s merchandise exports are expected to register a fall of 2-3 per cent in 2025-26 due to global economic uncertainties, aggravated by the West Asia crisis.

India, US to deepen cooperation under Pax Silica: Deepening cooperation, India and the United States (US) have agreed to further their cooperation under Pax Silica and broader economic and technology engagements, including in AI and critical minerals. 

Global front: European markets were trading higher with investors closely following the situation in the Middle East and looking ahead to U.S.-Iran diplomatic talks this weekend. Asian markets settled higher even as fresh Israeli strikes on Lebanon cast doubt over the durability of the fragile U.S.-Iran ceasefire. 

Finally, the BSE Sensex rose 918.60 points or 1.20% to 77,550.25 and the CNX Nifty was up by 275.50 points or 1.16% to 24,050.60.

The BSE Sensex touched high and low of 77,622.50 and 76,851.16, respectively. There were 25 stocks advancing against 5 stocks declining on the index.

The top gaining sectoral indices on the BSE were Auto up by 2.75%, Capital Goods up by 2.27%, Consumer Durables up by 2.20%, Industrials up by 2.19% and Consumer discretionary up by 2.18%, while IT down by 1.70% and TECK down by 1.10% were the few losing indices on BSE. 

The top gainers on the Sensex were Asian Paints up by 3.84%, ICICI Bank up by 3.22%, Mahindra & Mahindra up by 2.98%, Interglobe Aviation up by 2.77% and Axis Bank up by 2.49%. On the flip side, Sun Pharma down by 3.65%, Infosys down by 2.94%, TCS down by 2.45%, Tech Mahindra down by 1.44% and HCL Technologies down by 0.90% were the top losers.

Meanwhile, the Federation of Indian Chambers of Commerce and Industry in its latest report on the implications of the West Asia conflict has said that signs of early stress are being observed across sectors, warranting proactive measures to mitigate immediate risks as well as to build long-term resilience. 

The report highlighted that this crisis, while being challenging, also presents an opportunity for India to accelerate structural reforms aimed at strengthening economic resilience and reducing external vulnerabilities. According to the report, the government may consider the provision of emergency financing for Micro, Small, and Medium Enterprises (MSMEs) and issuance of advisories to address force majeure-related risks in public procurement contracts, ensuring companies are not punished for unavoidable delays.  

Moreover, the report suggested that the government may initiate consultations within the Goods and Services Tax (GST) Council to explore a roadmap for the inclusion of petroleum products under GST, a move that may cut costs, improve logistics efficiency, and make industries more competitive.

CNX Nifty touched high and low of 24,074.05 and 23,856.35, respectively. There were 43 stocks advancing against 7 stocks declining on the index.     

The top gainers on Nifty were Asian Paints up by 3.81%, Eicher Motors up by 3.75%, Bajaj Auto up by 3.29%, ICICI Bank up by 3.24% and Mahindra & Mahindra up by 3.13%. On the flip side, Coal India down by 4.14%, Sun Pharma down by 3.62%, Infosys down by 3.02%, TCS down by 2.55% and Tech Mahindra down by 1.55% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 31.62 points or 0.3% to 10,635.10, France’s CAC rose 65.7 points or 0.8% to 8,311.50 and Germany’s DAX gained 208.61 points or 0.88% to 24,015.60.

Asian markets settled higher on Friday tracking Wall Street’s gains overnight, even as investors remained cautious about the fragility of the ceasefire in the Middle East, with Iran accusing the US and Israel of violating the agreement. Market sentiments improved further after the White House confirmed that President Donald Trump is sending a high-level delegation led by Vice President JD Vance to Islamabad, Pakistan, this weekend for talks with Iran aimed at securing a more durable ceasefire following a two-week truce. Chinese shares gained following the release of inflation data that showed factory-gate prices returning to growth for the first time in over three years. Moreover, South Korean shares rose after the Bank of Korea (BoK) maintained its benchmark interest rate at 2.50% for the seventh consecutive meeting, in line with market expectations.