Indian financial markets closed Friday on a mixed note, with equities extending gains from a supportive U.S. Federal Reserve while the currency weakened to a new low amid persistent trade concerns.

Equity Markets

• BSE Sensex: Gained 0.53% to close at 85,267.66.
• NSE Nifty 50: Rose 0.57% to close at 26,046.95.
  The advance helped limit weekly losses for the indices, with investor focus shifting to domestic inflation data scheduled for release after market hours.

Currency and Fixed Income

• Indian Rupee (USDINR): Depreciated to end at a record closing low of 90.4150 per U.S. dollar, marking its second consecutive weekly fall. The decline is attributed to ongoing investor anxiety over protracted U.S.-India trade deal negotiations.
• Government Bonds: The yield on the benchmark 10-year government bond was at 6.6086%, with sentiment dampened by fresh debt supply.
• Money Market Rates:
  • Overnight call money rate: 4.80%
  • Overnight TREPS rate: 4.95%
• Overnight Index Swaps (OIS):
  • 1-year OIS rate: 5.45%
  • 5-year OIS rate: 5.915%

Market Context
The equity rebound was fueled by the Fed's recent rate cut and less-hawkish outlook, providing a favorable backdrop for risk assets. However, this optimism was countered in the currency market by persistent macro headwinds, specifically the lack of progress in bilateral trade talks, which continue to pressure the rupee and influence broader market sentiment.