Stock market rally: Sensex surges 600 points as RBI holds repo rate

The S&P BSE Sensex added 591.46 points to 82,225.81, while the NIfty50 gained 197 points to 25,210.15.

Benchmark stock market indices rallied after RBI Governor Shaktikanta Das announced the monetary policy committee decision to keep key interest rates unchanged for the 10th consecutive time on Wednesday.

The S&P BSE Sensex added 591.46 points to 82,225.81, while the NIfty50 gained 197 points to 25,210.15 as of 10:55 AM.

The Reserve Bank of India (RBI) has adjusted its stance to a neutral position. Shaktikanta Das said five members of the 6-member MPC voted in favour of keeping the policy repo rate unchanged at 6.5%.

"After evaluating the macroeconomic conditions and future outlook, the Monetary Policy Committee (MPC) decided, with 5 out of 6 members in agreement, to maintain the policy rate at 6.5%," he said.

Anu Aggarwal, Head of Corporate Banking, Kotak Mahindra Bank said that the RBI’s shift to a ‘neutral’ stance marks a pivotal step in its approach, providing more flexibility in navigating the evolving economic conditions.

With food inflation easing and the monsoon being favourable, this change signals optimism for India’s inflation outlook. Globally, trends such as the US Federal Reserve’s rate cut and easing monetary policies further support this shift. By adopting a more neutral position, the RBI is positioning itself to respond dynamically to future developments, while continuing to foster economic stability and long-term business confidence," she added.