After the RBI policy announcement, the Sensex soared by 1,400 points, with these stocks experiencing the most significant gains.

The Sensex experienced a surge of over 1,400 points. In comparison, the Nifty 50 saw a leap of over 300 points, fueled by significant gains in the banking, finance, auto, and real estate sectors, each skyrocketing by 8% following the Reserve Bank of India’s (RBI) decision to maintain the repo rate at a steady figure. The benchmark equity indexes witnessed a growth of more than 1.8%, and the total market value of all companies listed on the BSE escalated by ₹5.54 lakh crore, reaching a total of ₹421.43 lakh crore.

In today’s stock market activity, a notable moment captured was a bird flying past a screen showing the Sensex results on the exterior of the Bombay Stock Exchange (BSE) building in Mumbai, as reported by Reuters.

Significant stock performances included Wipro, which saw a 5% increase, Infosys, with a 3% rise, and a 2-3% gain for Tech Mahindra, TCS, and HCL Tech. Bajaj Finance, Ultratech Cement, and Tata Steel also stood out as top gainers, with Reliance leading today’s market rally.

Additionally, real estate stocks experienced a significant upturn, with realty indices climbing to 8%. Notably, Sunteck Realty and Siba jumped 8%, while Brigade, Lodha, and Mahindra Lifespace observed a 2-5% increase.

The RBI’s decision to keep the repo rate fixed at 6.5% aligned with its objective to gradually withdraw monetary accommodation amidst ongoing concerns regarding food inflation and global uncertainties. The Monetary Policy Committee (MPC) adjusted its forecast for real GDP growth for FY25 to 7.2% from 7%. RBI Governor Shaktikanta Das highlighted a favourable shift in the inflation-growth dynamics, noting a firm economic growth and a moderation in inflation, particularly in core inflation, which hit a series low in April 2024. Despite the deflation in fuel prices, food inflation remains a concern.

The RBI also decided to keep the rates for the Standing Deposit Facility (SDF) at 6.25% and the rates for the Marginal Standing Facility (MSF) and bank rate at 6.75%.

Reflecting on India’s economic landscape, Rohit Garg, co-founder & CEO of Olyv (previously known as SmartCoin), remarked on the strong fundamentals of India’s economy, highlighting a GDP growth of 8.2% for FY24, with inflation staying within the RBI’s target. He also commented on the policy’s optimistic outlook towards domestic conditions while recognizing the inherent global uncertainties.