Markets Gain After RBI Keeps Repo Rate Unchanged; Sensex Up 300 Points

Sensex, Nifty Extend Gains After RBI Keeps Repo Rate Unchanged

Indian equity markets traded in positive territory on Friday after the Reserve Bank of India (RBI) maintained the status quo on interest rates and retained its neutral monetary policy stance, providing reassurance to investors.

The BSE Sensex was trading 294 points higher at 74,654.48 around 10:10 am, while the NSE Nifty50 gained 77.65 points to reach 23,494.20, hovering close to the 23,500 mark.

RBI Keeps Rates Steady

In its June 2026 monetary policy review, the RBI’s Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, unanimously voted to keep the repo rate unchanged at 5.25 per cent.

The central bank also retained its neutral stance, indicating that future policy decisions will depend on incoming economic data and evolving inflationary trends.

As the move was largely in line with expectations, markets reacted positively, with investors taking comfort from the policy continuity.

• Financial Counters Drive the Rally
• Banking and financial stocks led the gains following the RBI announcement.

The Nifty Financial Services index rose 1.20 per cent, while Nifty Financial Services 25/50 gained 1.24 per cent. Nifty PSU Bank climbed 1.42 per cent and Nifty Bank advanced 0.69 per cent to 54,683.40. Nifty Private Bank also traded higher, gaining 0.39 per cent.

Among the benchmark heavyweights, Bajaj Finance emerged as the top performer, surging 3.53 per cent. Bajaj Finserv gained 1.47 per cent, SBI rose 1.22 per cent, Adani Ports added 0.95 per cent and Hindustan Unilever advanced 0.92 per cent.

Realty and Media Stocks Shine

Rate-sensitive sectors witnessed strong buying interest as investors welcomed the RBI’s decision to avoid any policy tightening.

Nifty Realty climbed 1.34 per cent, while Nifty Media jumped 2.90 per cent to become the best-performing sectoral index of the day. Nifty Consumer Durables gained 0.71 per cent and Nifty Chemicals rose 0.65 per cent.

The positive sentiment was also reflected in the broader markets. The Nifty Midcap 100 index advanced 0.56 per cent, while the Nifty Smallcap 100 gained 0.44 per cent.

Metals, IT Stocks Under Pressure

Not all sectors participated in the rally. Metal and information technology stocks remained under pressure despite the overall market strength. Nifty Metal declined 0.57 per cent, making it the biggest sectoral loser, while Nifty IT slipped 0.02 per cent after opening higher.

Among individual laggards, Trent fell 1.49 per cent, Tata Steel declined 1.40 per cent, HCLTech slipped 0.63 per cent and Bharti Airtel lost 0.31 per cent.

Focus Shifts to RBI’s Economic Outlook

Meanwhile, market volatility remained subdued. The India VIX eased 1.19 per cent to 15.70, indicating that investors remain relatively confident despite the policy event.

With the rate decision now behind them, traders and investors will turn their attention to Governor Sanjay Malhotra’s commentary on inflation, growth prospects and the RBI’s policy outlook, which could provide clues on the future direction of interest rates and markets.