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Indian stock markets traded firmly higher on Friday after the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.25 percent and retained its neutral policy stance. The move, which was largely in line with market expectations, boosted investor confidence and sparked buying across banking, financial, realty, and media stocks.
The benchmark BSE Sensex climbed nearly 300 points to trade around 74,650, while the NSE Nifty 50 moved closer to the 23,500 mark during morning trade. The positive reaction reflected relief among investors who had been closely watching the RBI’s policy decision amid concerns over global uncertainty and domestic growth prospects.
RBI Decision Supports Market Sentiment
The RBI’s Monetary Policy Committee, led by Governor Sanjay Malhotra, unanimously voted to maintain the benchmark lending rate at 5.25 percent. The central bank also retained its neutral stance, indicating that future policy actions will depend on evolving inflation and growth conditions.
Market participants viewed the decision as a sign of stability, particularly at a time when global markets remain volatile due to geopolitical tensions and economic uncertainties.
Financial Stocks Lead the Rally
Banking and financial stocks emerged as the biggest gainers following the policy announcement. Investors interpreted the RBI’s decision as supportive for the financial sector, which continues to benefit from stable interest rates and healthy credit growth.
Among the major gainers were finance and banking heavyweights, with shares of Bajaj Finance leading the rally. Other financial stocks also attracted strong buying interest as investors bet on continued stability in the lending environment.
Realty and Media Shares Shine
Interest rate-sensitive sectors such as real estate also gained momentum after the central bank refrained from any policy tightening. Lower borrowing costs generally support housing demand and improve sentiment in the property market.
Media stocks emerged as one of the strongest-performing segments of the day, while consumer durables and chemical companies also traded in positive territory.
Broader Markets Remain Resilient
The bullish sentiment extended beyond the benchmark indices. Mid-cap and small-cap stocks continued to attract investor interest, reflecting broader confidence in domestic equities despite concerns over slowing economic growth and external risks.
Market participants appeared encouraged by the RBI’s balanced approach, which seeks to support growth while keeping inflation under control.
Focus Shifts to Growth and Inflation Outlook
While the RBI maintained rates, it also lowered its GDP growth forecast for FY27 and projected inflation at 5.1 percent for the year. Investors will now closely monitor upcoming economic data, corporate earnings, and global developments to assess the direction of markets in the coming months.
For now, the RBI’s decision has provided a sense of policy certainty, helping markets extend gains and reinforcing confidence that the central bank remains focused on maintaining economic stability during a challenging global environment.