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Stock Market Closing Bell: Indian equity benchmarks closed higher on Friday, eking out gains after a largely range-bound and cautious session, as investors digested the Reserve Bank of India’s latest monetary policy decision.

The Sensex ended up 266.47 points, or 0.32 per cent, at 83,580.40, while the Nifty settled at 25,693.70, gaining 50.90 points, or 0.20 per cent. Despite intraday volatility, the market managed to hold on to gains through the session, supported by select heavyweight stocks.

Market sentiment remained guarded after the RBI’s Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 5.25 per cent. While the decision was largely on expected lines, investors focused on the central bank’s forward guidance and updated macroeconomic projections.

The RBI raised its GDP growth forecast for the first quarter of FY27 to 6.9 per cent and revised the second-quarter estimate upward to 7 per cent, pointing to resilience in domestic demand. However, the central bank refrained from offering a full-year growth outlook, citing the impending change in the GDP series, which added an element of uncertainty to the policy commentary.

On the inflation front, the MPC marginally raised its FY26 CPI inflation forecast to 2.1 per cent from 2 per cent earlier. Analysts noted that the combination of firmer growth projections and a slightly higher inflation trajectory could prompt the RBI to maintain a prolonged pause on interest rates, rather than rush into any policy easing.

“While inflation remains benign for now, the RBI appears keen to retain policy flexibility amid evolving global and domestic conditions,” market participants said.

On a weekly basis — including the special Sunday trading session for the Union Budget — the Nifty rose 1.47 per cent, marking its strongest weekly performance since mid-November last year. The gains were driven by optimism around growth prospects and selective buying in large-cap stocks.

Among individual stocks, ITC, Kotak Mahindra Bank, Hindustan Unilever, Bharti Airtel, Bajaj Finance and Bajaj Finserv emerged as the top gainers, lending support to the benchmarks. On the other hand, selling pressure was seen in TCS, Tech Mahindra, Adani Ports, Eternal and Asian Paints, which ended among the session’s laggards.

Overall, market participants remained selective, with stock-specific cues and policy clarity expected to drive near-term movements. With macro signals largely stable, investors are likely to track global developments and upcoming economic data for fresh direction.