The Indian stock market snapped its eight-day losing streak with a powerful rally on Wednesday, as the Reserve Bank of India's (RBI) decision to keep interest rates unchanged and maintain a neutral policy stance boosted investor confidence. Strong buying across rate-sensitive sectors like banking, realty, and auto propelled the benchmark indices to close with significant gains.
The S&P BSE Sensex surged 715.69 points (0.89%) to close at 80,983.31. The NSE Nifty 50 also saw a strong rebound, climbing 225.20 points (0.92%) to end the day at 24,836.30.
Key Market Highlights
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Sensex: Gained 716 points to close at 80,983.31.
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Nifty 50: Ended the session above the 24,800 mark.
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Market Sentiment: The mood on Dalal Street turned bullish after the RBI's policy announcement, which was seen as supportive of economic growth. The central bank's decision to lower its inflation forecast for FY26 also added to the positive sentiment.
RBI Monetary Policy: Key Takeaways
The market's rally was primarily driven by the outcome of the RBI's Monetary Policy Committee (MPC) meeting :
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Repo Rate Unchanged: The MPC kept the repo rate unchanged at 5.50% and maintained its 'Neutral' stance.
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GDP Projection Maintained: The RBI kept its Gross Domestic Product (GDP) growth projection for the fiscal year 2025-26 unchanged at 6.50%.
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Inflation Forecast Lowered: In a positive development, the RBI lowered its inflation forecast for FY26 to 3.10% from its earlier projection of 3.70%.
Top Gainers and Losers
Gains were led by auto, banking, and pharmaceutical stocks, while some metal and financial stocks lagged.
| Top Gainers |
Top Losers |
| Tata Motors |
Bajaj Finance |
| Shriram Finance |
Tata Steel |
| Kotak Mahindra Bank |
State Bank of India (SBI) |
| Trent |
UltraTech Cement |
| Sun Pharma |
Bajaj Auto |
Sectoral Performance
All major sectoral indices, except PSU banks, ended in the green.
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Top Gainers: The Nifty Realty, Nifty Private Bank, Nifty Pharma, and Nifty IT indices were the top performers, each rising by 1-4%.
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Top Loser: The Nifty PSU Bank index was the sole laggard, ending with a minor loss.
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Broader Markets: The broader markets also participated in the rally, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.9% and 1.1%, respectively.
IPO Market Update
The primary market remained busy, with several Mainboard and SME IPOs closing today.
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IPO Closures: Today was the last day for the public subscription of several IPOs, including two mainboard issues - Glottis and Fabtech Technologies - and six SME issues: Suba Hotels, Sodhani Capital, Om Metallogic, Vijaypd Ceutical, Dhillon Freight Carrier, and Chiraharit.
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Upcoming IPOs: The IPO market is set for more action with several big names like WeWork India, Tata Capital, and LG Electronics expected to launch their public issues in October.
Global Market Summary
Global markets were mixed as investors reacted to a U.S. government shutdown.
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Global Stocks: Asian markets hesitated after a strong quarter, while Wall Street futures slipped as the shutdown threatened to delay crucial economic data. Gold prices, however, hit a new record high amid the uncertainty.
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Currency: The Indian rupee strengthened against the U.S. dollar, reflecting the positive domestic sentiment after the RBI policy announcement.
Frequently Asked Questions (FAQs)
Why did the market rally so sharply today?
The market's strong rebound was primarily driven by the Reserve Bank of India's decision to keep interest rates unchanged and maintain a neutral policy stance. The central bank's positive outlook on inflation and growth further boosted investor confidence.
Which sectors led the gains today?
Rate-sensitive sectors were the top performers. The Nifty Realty, Private Bank, Auto, and Pharma indices saw significant gains of 1-4%.
What was the RBI's decision on interest rates?
The RBI's Monetary Policy Committee kept the repo rate unchanged at 5.50%. It also maintained its GDP growth forecast for FY26 at 6.50% and lowered its inflation projection for the same period.
What's the latest from the IPO market?
The IPO market was busy with the closure of eight public issues today, including the mainboard IPOs of Glottis and Fabtech Technologies. Several major IPOs are expected to open in the coming weeks.