The Indian rupee closed at 85.6325 on Friday in comparison to its previous closing at 85.79 on Thursday evening. The USDINR pair surged to 85.98 after the RBI announced a dovish 50 basis point rate cut but later stabilized as the central bank shifted its policy stance to ‘Neutral.’ Despite the rate cut, the rupee remained steady, supported by India’s strong forex reserves of $691.5 billion—enough to cover nearly 11 months of imports. This solid buffer offers protection against external shocks, according to Amit Prabhari, MD of CR Forex Research. Experts note that while the rate cut boosts liquidity and may attract foreign inflows, it also increases rupee supply, potentially capping the currency’s gains. As a result, USD/INR continues to trade within a tight range amid balanced forces of monetary easing and macroeconomic resilience.

The Nifty was up 252.25 points or 1.02% at 25,003.15, the Sensex was up 734.92 points or 0.90% at 82,176.96. Eternal, Dr Reddy, Trent, PowerGrid, ICICI bank were among biggest gainers on the Nifty, while losers were Induslnd Bank, Tata consumer products, Axis Bank, Bajaj Finserv, Heromoto corp.

Indian stock markets surged on Friday after a sharp 50 basis point rate cut by RBI Governor Sanjay Malhotra and a ?2.5 lakh crore liquidity boost through a 100 bps CRR cut. The Sensex jumped over 800 points to an intraday high of 82,299.89, while the Nifty surged 260 points to 25,029.50, driven by strong buying across sectors. The rally was especially strong in Bank Nifty, Nifty Financial Services, and Nifty Realty, each gaining over 3%. The aggressive policy move and liquidity infusion sparked broad optimism, reversing the market’s slow start and boosting investor confidence. The rate cut is also expected to lower borrowing costs, improve credit growth, and support economic recovery in the months ahead.