Indian equities posted modest gains after the Reserve Bank of India maintained interest rates, signalling confidence in domestic demand despite global uncertainties and volatile trading conditions.
Indian equities ended with modest gains on Wednesday after the Reserve Bank of India left interest rates unchanged for a fourth straight policy meeting, offering investors a brief reprieve after a sharp sell-off earlier in the week. The BSE Sensex rose 152.05 points, or 0.19 per cent, to close at 78,581, while the NSE Nifty added 9.75 points to finish at 24,624.65. Both gauges swung sharply during the session, with the Sensex touching an intraday high of 79,055.38 before sliding to a low of 78,285.74, reflecting a market still struggling for direction.
The central bank’s decision was widely expected, but it still shaped sentiment after the six-member Monetary Policy Committee, led by Governor Sanjay Malhotra, kept the repo rate at 5.25 per cent and maintained a neutral stance. The RBI also nudged up its growth forecast for the current financial year to 6.7 per cent from 6.6 per cent, while lowering annual inflation estimates, a combination that suggested confidence in domestic demand even as policymakers remained alert to risks from energy prices, West Asia tensions and trade friction. Analysts quoted by PTI said the pause gave the market no fresh trigger, though the revised outlook helped anchor expectations.
Trading was uneven across the market. UltraTech Cement, NTPC, State Bank of India, Mahindra & Mahindra, InterGlobe Aviation and Kotak Mahindra Bank were among the main gainers in the Sensex pack, while Tata Consultancy Services, HCL Tech, Reliance Industries and Bharat Electronics weighed on the index. Broader shares also firmed, with small-cap and mid-cap benchmarks advancing, and several sector indices, including housing finance, metals, autos, insurance and realty, posting gains.
The recovery came after a bruising start to the week. On Tuesday, the Sensex had fallen 210.08 points and the Nifty had dropped 159.40 points, while stock exchanges also began operating a new closing auction mechanism for eligible shares with futures and options contracts. Market participants said the transition added to intraday divergence, even as foreign investors remained active, buying equities worth ₹2,446.47 crore on Tuesday. Overseas cues were broadly constructive on Wednesday, with Asian, European and US markets mostly higher, but Brent crude climbed to $80.75 a barrel, keeping attention fixed on the conflict risks that continue to hover over inflation and sentiment.
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