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Indian stock markets extended their gains on Wednesday afternoon, buoyed by the Reserve Bank of India’s (RBI) decision to maintain the repo rate at 6.5 per cent and shift to a neutral stance.
The Nifty 50 climbed 133.20 points or 0.53 per cent to 25,146.35, while the Sensex rose 398.78 points or 0.49 per cent to 82,033.59 as of 12.33 pm.
The RBI’s monetary policy announcement, which came during the trading session, was met with positive sentiment. Deepak Ramaraju, Senior Fund Manager at Shriram AMC, commented on the decision, saying, “The RBI stance has changed to neutral, indicating that its primary focus is to balance growth and inflation.”
- Also read: RBI MPC Meeting Live Updates: RBI keeps repo rate unchanged at 6.5%, changes stance to ‘neutral’
Market breadth remained strong, with 2,876 stocks advancing compared to 951 declining on the BSE. The exchange reported 163 stocks hitting 52-week highs, while only 27 touched 52-week lows.
Among sectoral indices, the Nifty Next 50 showed robust performance, gaining 1.62 per cent to reach 75,803.95. The Nifty Midcap Select and Nifty Financial Services indices also posted gains of 1.01 per cent and 0.73 per cent respectively.
Top gainers on the NSE at 12.33 pm included Shriram Finance (+3.47 per cent), Tata Motors (+2.72 per cent), Trent (+2.59 per cent), Bharti Airtel (+2.46 per cent), and Bajaj Finance (+2.34 per cent). Conversely, the top losers were Nestle India (-1.98 per cent), ONGC (-1.35 per cent), ITC (-1.07 per cent), Britannia (-1.04 per cent), and Hindustan Unilever (-0.74 per cent).
Ramaraju suggested that the markets may trend positively with subsequent rate cuts by the US Federal Reserve, but cautioned that “stock-specific corrections can be expected based on the earnings performance.”
The day’s trading activity marked a reversal from the previous six-day losing streak, with the Nifty 50 opening at 25,065.80 and the Sensex at 81,954.58. This upward movement was supported by positive global cues, particularly the tech rally on Wall Street and falling oil prices due to hopes of de-escalation in the Middle East.
As the markets continue to digest the RBI’s policy decision and global factors, investors are advised to maintain a cautious approach. Ramaraju concluded, “Overall, in the short term, one can expect a buy-on-dip approach with a neutral stance by RBI.”
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