Markets rebound after 8-day slump; Sensex jumps over 700 points post RBI policy
Mumbai (PTI): Market benchmarks rebounded sharply on Wednesday after an eight-session losing streak, with Sensex jumping 715 points, propelled by bargain hunting in bank and financial stocks after the RBI left interest rates unchanged and revised upward its growth estimates to 6.8 per cent for the current fiscal.
Buoyancy across global equities and easing crude oil prices boosted the risk appetite of local investors, triggering value buying across the sectors, traders said.
The 30-share BSE Sensex jumped 715.69 points or 0.89 per cent to settle at 80,983.31. During the day, it surged 800.81 points or 0.99 per cent to 81,068.43.
As many as 2,797 stocks advanced while 1,360 declined and 134 remained unchanged on the BSE.
The 50-share NSE Nifty climbed 225.20 points or 0.92 per cent to 24,836.30.
From the Sensex firms, Tata Motors jumped the most by 5.54 per cent, followed by Kotak Mahindra Bank, Trent, Sun Pharma, Axis Bank, and ICICI Bank.
However, Bajaj Finance, State Bank of India, UltraTech Cement and Tata Steel were among the laggards.
"The equity market posted a broad-based rally today, with the RBI’s policy decision broadly in line with expectations but accompanied by a more constructive tone than in June, which buoyed investor sentiment. Its dovish stance, alongside an upward revision of India’s GDP growth forecast from 6.5 per cent to 6.8 per cent, reinforced confidence," Vinod Nair, Head of Research, Geojit Investments Limited, said.
The Reserve Bank of India expectedly left its key interest rates unchanged on Wednesday, as it waited for greater clarity on the impact of US tariffs as well as transmission of earlier rate cuts and recent tax reductions.
RBI Governor Sanjay Malhotra, however, signalled scope for easing in the coming months to support the economy from any possible hit from US tariffs.
The six-member monetary policy committee voted unanimously to keep the repurchase rate unchanged at 5.5 per cent and decided to continue with a "neutral" policy stance, giving it flexibility to move in either direction if needed in future.
"Markets rallied across the board on Thursday after the Reserve Bank of India lifted its FY26 GDP growth forecast to 6.8 per cent and trimmed inflation expectations to 2.6 per cent -- the lower bound of its target range. The upbeat outlook on growth and price stability came as a timely reassurance for investors, who had been jittery over the potential drag from steep US tariff hikes.
"RBI’s commentary helped restore confidence, signalling resilience in India's macro fundamentals despite global headwinds," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
The central bank raised its growth forecast for the fiscal year ending March 2026 to 6.8 per cent from 6.5 per cent, but the governor said the forward-looking projections for Q3 (October-December) and beyond are expected to be slightly lower than projected earlier, primarily due to trade-related headwinds, despite being partially offset by the impetus provided by the rationalisation of GST rates.
The BSE smallcap gauge jumped 1.16 per cent, and the midcap index climbed 0.91 per cent.
All sectoral indices ended higher. Bankex climbed 1.44 per cent, telecommunication (1.26 per cent), financial services (1.22 per cent), healthcare (1.13 per cent), realty (1.11 per cent), utilities (1.03 per cent) and consumer discretionary (0.94 per cent).
"Additional support (for equities) came from five targeted measures to ease lending, including relaxed capital market exposure norms and enhanced infrastructure financing. Gains were led by banking and consumer stocks, while autos advanced on the back of healthy sales. Overall, the rebound reflects improving sentiment and hints at early signs of a potential shift in market direction," Nair said.
Equity markets will remain closed on Thursday for Dussehra and Mahatma Gandhi Jayanti.
In Asian markets, South Korea's Kospi settled in positive territory, while Japan's Nikkei 225 index ended lower. Markets in China were closed for the National Day holiday.
Equities in Europe were trading higher in mid-session deals.
US markets ended higher on Tuesday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,327.09 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought equities worth Rs 5,761.63 crore, according to exchange data.
Global oil benchmark Brent crude declined 0.95 per cent to USD 65.40 a barrel.
In the last eight trading days, the BSE benchmark has tanked 2,746.34 points or 3.30 per cent, and the Nifty dropped 812.5 points or 3.19 per cent.
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Jai Bhim: Slogan that energised Dalits was first given at this central Maharashtra village
Chhatrapati Sambhajinagar (PTI): 'Jai Bhim': These two words have come to symbolise the awakening and empowerment of the Dalit community in independent India, but not many people know how it originated.
The slogan, which also encapsulates the immense reverence in which Dr Bhimrao Ramji Ambedkar is held, was first raised at the Makranpur Parishad, a conference organised at Makranpur village in Kannad teshil of today's Chhatrapati Sambhajinagar district in Maharashtra.
Ambedkar, the chief architect of India's Constitution, died on December 6, 1956.
Bhausaheb More, the first president of the Scheduled Castes Federation of Marathwada, organised the first Makranpur Parishad on December 30, 1938.
Dr Ambedkar spoke at the conference and asked the people not to support the princely state of Hyderabad under which much of central Maharashtra then fell, said Assistant Commissioner of Police Pravin More, Bhausaheb's son.
"When Bhausaheb stood up to speak, he said every community has its own deity and they greet each other using the name of that deity. Dr Ambedkar showed us the path of progress, and he is like God to us. So henceforth, we should say 'Jai Bhim' while meeting each other. The people responded enthusiastically. A resolution accepting 'Jai Bhim' as the community's slogan was also passed," More told PTI.
"My father came in contact with Dr Babasaheb Ambedkar in his early years. Bhausaheb was aware of the atrocities the Nizam state committed on Dalits. He told Ambedkar about these atrocities, including the pressure to convert. Dr Ambedkar was strongly against these atrocities, and he decided to attend the 1938 conference," he said.
As Ambedkar was against the princely states, he was banned from giving speeches in the Hyderabad state but was allowed to travel through its territories. The Shivna river formed the border between Hyderabad and British India. Makranpur was chosen as the venue for the first conference because it was on the banks of Shivna but lay in the British territory, ACP More said.
The stage made of bricks, from where Dr Ambedkar addressed the conference, still stands. The conference is organised on December 30 every year to carry forward Ambedkar's thought, and the tradition was not discontinued even in 1972 when Maharashtra experienced one of the worst droughts in it history.
"My grandmother pledged her jewellery for the conference expenses. People from Khandesh, Vidarbha and Marathwada attended it. Despite a ban imposed by the Nizam's police, Ambedkar's followers crossed the river to attend the event," said ACP More.
"This is the 87th year of Makranpur Parishad. We have deliberately retained the venue as it helps spread Ambedkar's thought in rural areas," he added.
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