Indian equity benchmarks ended higher by over half percent on Friday, driven by optimism surrounding easing geopolitical tensions, falling crude prices, and fresh foreign fund inflows. Renewed hopes of a diplomatic resolution between the US and Iran, along with a 10-day ceasefire between Israel and Lebanon, have materially improved global risk appetite. 

Some of the important factors in trade: 

India likely to grow at 6.3% despite oil price averages $130/barrel in FY27: Amid the West Asia crisis, S&P Global Ratings has stated that India is likely to grow at 6.3% even if oil prices average $130 per barrel in the current fiscal year (FY27). 

EU's proposed CBAM expansion may impact Indian exporters: Think tank GTRI said the European Union (EU) is planning an expansion of its Carbon Border Adjustment Mechanism (CBAM) and the move could increase carbon tax costs on Indian manufactured exports to Europe. 

India, New Zealand FTA to be signed on April 27: The report said India and New Zealand will sign a free trade agreement (FTA) on April 27. The free trade pact aims to provide tariff-free access to the island nation's market for domestic exporters' goods and will bring in $20 billion in investment over the next 15 years. 

RBI pulls out Rs 2 lakh crore liquidity via VRRR Auction: The Reserve Bank of India (RBI) has pulled out Rs 2,00,031 crore transient liquidity from the banking system through a seven-day variable rate reverse repo (VRRR) auction. 

Global front: European markets were trading mostly in green amid growing optimism over a potential deal to end the Iran war. Asian markets settled mostly lower as investors sought more clarity regarding further developments in a potential U.S.-Iran peace deal ahead of the expiry of a two-week truce next week.

Finally, the BSE Sensex rose 504.86 points or 0.65% to 78,493.54 and the CNX Nifty was up by 156.80 points or 0.65% to 24,353.55.  

The BSE Sensex touched high and low of 78,553.45 and 77,726.23, respectively. There were 24 stocks advancing against 6 stocks declining on the index.  

The top gaining sectoral indices on the BSE were FMCG up by 2.57%, Capital Goods up by 2.19%, Power up by 1.95%, Utilities up by 1.51% and Energy up by 1.43%, while there was no losing sectoral index on the BSE. 

The top gainers on the Sensex were Hindustan Unilever up by 4.75%, Power Grid Corporation up by 1.86%, Reliance Industries up by 1.61%, Bharat Electronics up by 1.56% and Tech Mahindra up by 1.41%. On the flip side, Sun Pharma down by 1.06%, Mahindra & Mahindra down by 0.68%, HCL Technologies down by 0.57%, Larsen & Toubro down by 0.54% and Eternal down by 0.06% were the top losers.

Meanwhile, amid the West Asia crisis, S&P Global Ratings has stated that India is likely to grow at 6.3% even if oil prices average $130 per barrel in the current fiscal year (FY27). Citing the country’s long-term political commitment to fiscal consolidation, it noted that the fiscal strain caused by higher energy prices is unlikely to affect India’s sovereign credit rating.

Yee Farn Phua, Director of Sovereign and International Public Finance Ratings at S&P, said that under a baseline assumption of crude oil at $85/barrel, India’s growth is projected at 7.1% in FY27. He added that this remains a very strong figure compared to other major economies. Even in an alternative scenario where oil averages $130/barrel, growth is still expected to be around 6.3%, which would likely remain the highest among major economies.

The rating agency warned that disruptions to energy supplies - leading to fuel rationing or shortages of related products such as fertilisers - pose a significant risk. It noted that India could face a weaker current account balance, rising input costs that squeeze producer margins, higher consumer prices that erode purchasing power, and fiscal pressures as the government steps in to shield consumers from the impact.

Phua said ‘The government's fiscal consolidation efforts continue to be very strong... India has a lot of physical flexibility on the spending side, especially on infrastructure. So, in case some of the areas where they have to spend more, for example, the subsidy bill, they might cut in other places to make sure that they will still hit the fiscal deficit target’.

CNX Nifty touched high and low of 24,371.90 and 24,096.05, respectively. There were 40 stocks advancing against 10 stocks declining on the index.      

The top gainers on Nifty were Hindustan Unilever up by 4.72%, Nestle up by 2.20%, JSW Steel up by 2.20%, Apollo Hospital up by 2.08% and Power Grid Corporation up by 1.89%. On the flip side, Wipro down by 2.83%, HDFC Life Insurance down by 2.41%, Sun Pharma down by 1.04%, Bajaj Auto down by 0.76% and Mahindra & Mahindra down by 0.63% were the top losers.

European markets were trading mostly in green; France’s CAC rose 44.9 points or 0.54% to 8,307.60 and Germany’s DAX gained 126.93 points or 0.53% to 24,281.40, while UK’s FTSE 100 decreased 37.44 points or 0.35% to 10,552.55.

Asian markets settled mostly lower on Friday as investors awaited further details of a potential peace deal between Iran and the United States ahead of the expiry of a two-week truce next week. Chinese shares fell ahead of the People’s Bank of China’s (PBOC) loan prime rate decision due on Monday. Japanese shares declined on profit-taking after the Nikkei hit a near-record high, while Bank of Japan Governor Kazuo Ueda provided no clear signal on a near-term interest rate hike ahead of the central bank’s policy decision this month. However, Indonesian shares rose tracking Wall Street’s gains overnight and after Indonesia’s Finance Minister Purbaya Yudhi Sadewa’s remarks that US investors currently favour portfolio flows, such as bonds and equities, over long-term Foreign Direct Investment (FDI) in Indonesia.