The Sensex today closed nearly 1% higher, marking a positive session for Indian equity markets as the Reserve Bank of India (RBI) opted to keep the repo rate unchanged at 5.50%. The decision signaled policy stability amid easing inflation pressures and boosted investor sentiment across sectors such as auto, real estate, and banking.
Sensex and Nifty End on a Strong Note
On Thursday, the Sensex surged by 715.7 points while the Nifty 50 climbed 0.92%, reclaiming key resistance levels. Analysts attributed this rally to the RBI’s neutral stance, which left room for adjustments in the future based on inflation and growth metrics.
The today Sensex momentum was also supported by stable global cues, a steady rupee, and optimism around corporate earnings.
Market breadth remained strong, with 150 stocks hitting fresh 52-week highs, including Aditya Birla Capital, Fortis Healthcare, L&T Finance, Muthoot Finance, Tata Investment Corporation, and RBL Bank. Meanwhile, 118 stocks touched 52-week lows, such as TCS, Happiest Minds Technologies, Praj Industries, and JSW Cement.
RBI Decision Signals Confidence in Economic Stability
The RBI’s decision to hold the repo rate at 5.50% came as no surprise but provided a psychological boost to markets. Abhinav Tiwari, Research Analyst at Bonanza, noted that the central bank’s balanced approach reflects its commitment to supporting credit growth while keeping inflation in check.
“If global risks reduce and domestic demand strengthens, the RBI could consider rate cuts in the future,” Tiwari said, adding that sectors like banking and finance are well-positioned for growth due to easier regulations and rising credit demand.
Technical Outlook for Nifty and Sensex
Vatsal Bhuva, Technical Analyst at LKP Securities, highlighted that Nifty closed above its 100-day EMA at 24,750, a level that previously acted as resistance. The index also retraced 61% of the Fibonacci move between the September 1 low and September 18 high at 25,453.
On the derivatives side, heavy put writing at 24,700–24,800 suggests a stronger base, with maximum open interest at 25,000. “Overall, sentiment has turned positive, with support at 24,700 and resistance at 25,000–25,100,” Bhuva said.
This bullish momentum is expected to keep the Sensex today steady in the near term, though global factors like oil prices and U.S. Federal Reserve policy will remain influential.
Sectoral Highlights
- Auto stocks gained sharply on strong sales data, with analysts expecting continued demand during the festive season.
- Real estate companies also rose as investors priced in potential credit growth and favorable financing conditions.
- Banking and finance stocks benefited from the RBI’s cautious but optimistic tone, fueling expectations of sectoral outperformance.
In contrast, IT stocks such as TCS struggled, reflecting concerns over global demand pressures.
Global Market Influence
Indian markets also mirrored positive global trends. The Dow Jones in the U.S. has been trading cautiously amid mixed economic data, and investors are closely watching signals on inflation and interest rate policies. Many Indian traders track Dow Jones Moneycontrol updates to gauge overnight market cues, which in turn influence domestic sentiment.
Investor Outlook
Analysts remain cautiously optimistic. While the today Sensex rally has lifted sentiment, sustained earnings growth and supportive macroeconomic indicators will be crucial to maintaining momentum.
Key risks include fluctuating crude oil prices, global geopolitical tensions, and policy decisions by major central banks. However, with the RBI maintaining stability and India’s domestic demand story intact, medium-term prospects look strong.
The Sensex today closed with impressive gains as the RBI’s steady policy stance reassured investors. With more than 150 stocks hitting fresh highs and technical indicators turning favorable, the Indian stock market remains on firm footing.
As global markets like the Dow Jones continue to influence Indian indices, traders and investors are advised to stay vigilant while capitalizing on sector-specific opportunities. For now, optimism prevails, and the upcoming earnings season is likely to determine the next leg of market direction.
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