Indian equity benchmarks closed on a mixed note on Friday after a volatile trading session. The Sensex ended flat, while the Nifty slipped marginally as gains in auto and PSU bank stocks were offset by weakness in IT counters.

Sectoral Performance

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On the sectoral front, most indices traded in the green, with PSU Bank, auto, and metal indices rising by 0.5-1 per cent. IT emerged as the sole underperformer, capping the market's gains. The BSE Midcap index was up by 0.3 per cent, and the Smallcap index advanced by 0.7 per cent, reflecting robust buying interest in broader markets.

Top Gainers and Losers

Nifty's top gainers included Bajaj Auto, Axis Bank, BPCL, Tata Motors, and Maruti Suzuki, as banking and auto counters led the recovery. However, heavyweights such as L&T, Titan Company, and Infosys dragged the indices lower.

Key Developments

The Reserve Bank of India's decision to cut the Cash Reserve Ratio (CRR) by 50 basis points to 4 per cent in two tranches supported banking stocks. The Nifty PSU Bank index surged 1 per cent, with UCO Bank, Canara Bank, Union Bank, and Bank of Baroda recording notable gains.

Meanwhile, the RBI kept the repo rate unchanged at 6.5 per cent for the 11th consecutive time, adopting a neutral stance in a 4:2 vote. Governor Shaktikanta Das reiterated the RBI's focus on price stability while emphasizing the importance of growth amid slowing GDP momentum.

Market Sentiment

Despite the cautious tone of the RBI's commentary, investor sentiment remained buoyed by robust buying in specific sectors. Analysts expect markets to trade range-bound in the near term, with sector-specific triggers driving stock movements.

Market Closing Stats

  • Sensex: Flat
  • Nifty: Down marginally
  • Top Active Stocks: BSE, CDSL, Angel One

The overall mood suggests cautious optimism as markets digest the RBI's latest policy measures.