The Indian rupee closed at 87.5425 on Friday in comparison to its previous closing at 87.59 on Thursday evening. The Indian Rupee strengthened against the U.S. Dollar on Friday, likely supported by suspected Reserve Bank of India (RBI) intervention amid concerns over new 25% U.S. tariffs on Indian exports and ongoing foreign portfolio outflows. On Thursday, foreign institutional investors (FIIs) net sold equities worth ?5,588.91 crore, according to exchange data, adding pressure to the currency. However, falling crude oil prices offered some relief to rupee sentiment. Additionally, fiscal deficit data released by the Controller General of Accounts (CGA) showed the April–June gap at ?2.81 trillion, or 17.9% of the full-year target—sharply up from ?1.36 trillion a year earlier—highlighting fiscal challenges. Despite these headwinds, RBI support and lower oil prices helped the rupee recover some lost ground.

The Nifty was down 197.55 points or 0.80 percent at 24,570.80, the Sensex was up 603.40 points or 0.74 percent at 80,582.18. Trent, Asian Paints, Eicher Motors, Nestle, ITC were among biggest gainers on the Nifty, while losers Sun Pharma, Dr Reddy's Labs, Cipla, Infosy, Tata Steel.

Indian benchmark indices Sensex and Nifty50 traded in the red on Friday, pressured by steep U.S. tariffs on multiple trade partners, including a reaffirmed 25% import duty on Indian goods. Twelve of the 16 major sectoral indices opened lower, while broader smallcaps and midcaps remained flat. Nifty FMCG outperformed, driven by Hindustan Unilever (HUL), which jumped after reporting a 7.6% YoY rise in Q1 net profit to ?2,732 crore. In contrast, Nifty Auto, IT, Metal, and Pharma sectors saw declines. While markets closed lower on Thursday, they recovered from deeper losses, with investors interpreting the U.S. tariffs and penalties—effective August 1—as more of a negotiating stance than a firm trade policy, keeping broader sentiment cautiously optimistic.