Sensex snaps 8-day losing run, Nifty tops 24,800 as RBI keeps policy rates unchanged

After eight straight sessions of losses, domestic equities finally staged a rebound on Wednesday. Both Sensex and Nifty closed higher as the Reserve Bank of India’s Monetary Policy Committee (MPC) left the repo rate unchanged at 5.5 per cent for the second time in a row, while retaining its policy stance at ‘Neutral’.

Investors' wealth rose by more than Rs 3 lakh crore as the overall market capitalisation of BSE-listed firms surged to Rs 455.57 lakh crore from Rs 452.23 lakh crore on Tuesday, September 30.

At the closing bell, the Sensex climbed 715.69 points, or 0.89 per cent, to settle at 80,983.31, while the Nifty50 rose 225.20 points, or 0.92 per cent, to end at 24,836.30.

Vatsal Bhuva, technical analyst at LKP Securities, said the 50-pack index ended Wednesday’s session with a bullish candlestick after the RBI policy outcome and auto sales data, reclaiming levels above its 100-day EMA at 24,750, which earlier acted as resistance. 

“The index has also retraced 61 per cent of the Fibonacci move between the September 1 low and September 18 high at 25,453. On the derivative front, heavy put writing at 24,700–24,800 suggests a higher base, with maximum OI at 25,000. Overall, sentiment has turned positive, with support at 24,700 and resistance at 25,000–25,100,” Bhuva said.

Tata Motors led the gainers on the Sensex, rising 5.54 per cent to Rs 718.15. Kotak Mahindra Bank followed with a 3.45 per cent gain, while Trent, Sun Pharma, Axis Bank, and ICICI Bank were up 3.31 per cent, 2.58 per cent, 2.43 per cent and 1.73 per cent, respectively.

Five stocks namely, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Tata Motors and Axis Bank, contributed heavily to the Sensex’s rise. 

Among sectoral indices, the BSE Bankex index jumped 1.44 per cent to 62,401.58, while the BSE Healthcare gained 1.13 per cent to close at 43,564.39.

Within the BSE Sensex pack, TCS has touched a fresh 52-week low of Rs 2,867.55.

Overall, out of 4,291 actively traded stocks on the BSE, 2,802 ended higher, while 1,353 declined and 136 closed unchanged. During the session, 150 stocks scaled their 52-week highs, whereas 120 slipped to 52-week lows. Meanwhile, 270 scrips were locked in their upper circuits and 174 in lower circuits.

Divam Sharma, co-founder and fund manager at Green Portfolio PMS, said the RBI’s decision to maintain its current stance was on expected lines. “With geopolitical risks still evolving, the central bank is rightly choosing to retain policy flexibility rather than rush into rate cuts,” Sharma said.

Sharma said the domestic macro environment, however, remains constructive — improving activity indicators, a favourable monsoon outlook, GST-driven formalisation and falling inflation together provide a solid cushion for markets.

“India’s GDP growth trajectory continues to outpace global peers, ensuring sustained interest from both domestic and foreign investors. We believe consumption-oriented sectors are poised to benefit as rural recovery, stable inflation and income growth return to the forefront,” Sharma added.