Indian stock market: Indian indices – Sensex and Nifty – closed higher on Friday, February 6, supported by buying interest in select heavyweight stocks such as ITC, Kotak Mahindra Bank, and ICICI Bank.

The Sensex rose 266 points, or 0.32%, to settle at 83,580.40, while the Nifty 50 gained 51 points, or 0.20%, ending the session at 25,693.70.

“Markets remained volatile during the week but ended with healthy gains, as bullish momentum resurfaced with supportive global and domestic triggers outweighing initial Budget-related concerns. The announcement of the India–US trade deal sparked a strong recovery, helping markets absorb the early weakness following the increase in STT on derivatives in Budget 2026–27. Sentiment improved further after the RBI kept policy rates unchanged and revised its GDP growth estimates upward. As a result, the benchmark indices — Nifty and Sensex — closed at 25,693.70 and 83,580.40, respectively. Broader indices also advanced, reflecting improved risk appetite,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Stock Market Outlook next week

According to Ponmudi R, CEO – Enrich Money, the Indian equity markets have entered a consolidation phase, shifting investor focus toward implementation, capex execution and the pace of actual spending.

” Overall sentiment remains cautiously optimistic, with markets expected to stay event-driven in the near term, tracking global cues, capital flows and geo-political developments in the Middle-East.

In addition, investors will be watching the release of January consumer price inflation data, which will be compiled using a revised base year of 2024. The updated base is expected to better reflect current consumption patterns across both rural and urban India, improving the accuracy, relevance and transparency of CPI estimates. Geopolitical developments will also remain in focus, particularly the ongoing negotiations between the US and Iran. Any setback in the talks could heighten volatility across global financial and commodity markets, as it may increase the risk of a US military intervention and a broader regional conflict in the Middle East,” Ponmudi added.

(This is a developing story)

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.