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Indian equity benchmarks ended Thursday’s session with robust gains as investor focus shifted to the Reserve Bank of India’s (RBI) upcoming monetary policy decision. Both large- and mid-cap stocks participated in the rally, with optimism building around a likely interest rate cut.

By the close of trade, the BSE Sensex rose 443.79 points, or 0.55 per cent, to settle at 81,442.04. The NSE Nifty 50 also advanced, gaining 130.70 points, or 0.53 per cent, to finish at 24,750.90. 

Broader Market Update

Broader market indices mirrored the positive sentiment, Nifty Midcap 100 climbed 378.35 points (0.65 per cent) to 58,303, while Nifty Smallcap 100 moved up 175.50 points (0.96 per cent) to 18,432.60.

Anticipation surrounds Friday’s Monetary Policy Committee (MPC) meeting outcome, to be delivered by RBI Governor Sanjay Malhotra. Analysts widely expect a 25 basis point reduction in the benchmark repo rate, driven by easing inflation and a desire to support economic growth.

Sectorial Update

Sector-wise performance was mixed. Gains were noted in IT, FMCG, financial services, pharmaceuticals, realty, energy, and metals, while losses were seen in auto, PSU banks, private banks, and media stocks.

According to Sundar Kewat of Ashika Institutional Equity, Nifty traded in a volatile range as participants remained cautious ahead of the RBI’s monetary policy decision. He added that softer US treasury yields and a weakening dollar offered some tailwinds to domestic equities, though global investor sentiment remains wary due to ongoing US-China tensions.

On the technical front, the Nifty displayed promising indicators. “Support continues to hold at 24,500; unless the Nifty breaks below this level, a serious correction is unlikely. On the contrary, a steady or even sharp recovery appears possible in the near term,” said Rupak De of LKP Securities.

Meanwhile, the Indian rupee appreciated, buoyed by renewed risk appetite and inflows from foreign institutional investors. The outcome of the RBI’s policy review is likely to steer near-term market sentiment as traders await clarity on the central bank’s approach to fostering growth.