Equity benchmark indices rebounded sharply on Wednesday after an eight-day slump with the Sensex going up 715.69 points, helped by buying in bank and financial stocks after the RBI left key interest rates unchanged and revised its growth estimates upward for the current fiscal.
The 30-share BSE Sensex jumped 715.69 points or 0.89 per cent to settle at 80,983.31. During the day, it surged 800.81 points or 0.99 per cent to 81,068.43. The 50-share NSE Nifty climbed 225.20 points or 0.92 per cent to 24,836.30.
From the Sensex firms, Tata Motors jumped the most by 5.54 per cent, followed by Kotak Mahindra Bank, Trent, Sun Pharma, Axis Bank and ICICI Bank. However, Bajaj Finance, State Bank of India, UltraTech Cement and Tata Steel were among the laggards.
The RBI, as expected, left its key interest rates unchanged on Wednesday as it waited for greater clarity on the impact of US tariffs as well as transmission of earlier rate cuts and recent tax reductions. RBI Governor Sanjay Malhotra, however, signalled scope for easing in the coming months to support the economy from any possible hit from US tariffs.
Markets rallied across the board after the RBI revised its FY26 GDP growth forecast and trimmed inflation expectations. The upbeat outlook on growth and price stability came as a timely reassurance for investors, who had been jittery over the potential drag from steep US tariff hikes. The RBI’s announcement helped restore confidence, signalling resilience in India's macro fundamentals despite global headwinds.
In Asian markets, South Korea's Kospi settled in positive territory, while Japan's Nikkei 225 index ended lower. Markets in China were closed for the National Day holiday. Stock markets in Europe were trading higher. US markets ended higher on Tuesday. Global oil benchmark Brent crude declined 0.95 per cent to USD 65.40 a barrel.
Foreign institutional investors (FIIs) offloaded equities worth Rs 2,327.09 crore on Tuesday, while domestic institutional investors (DIIs) bought equities worth Rs 5,761.63 crore, according to exchange data. In the last eight trading days, the BSE benchmark has tanked 2,746.34 points or 3.30 per cent, and the Nifty dropped 812.5 points or 3.19 per cent.
Also read: Stock markets trade higher ahead of RBI’s interest rate decision
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