Market Rebound: Sensex and Nifty Rally Post RBI Rate Decision

Benchmark indices Sensex and Nifty surged on Wednesday following the Reserve Bank of India's decision to maintain interest rates at 5.5%. Market gains were driven by bank stocks amidst positive investor sentiment after eight days of decline. Some Sensex firms outshone, while others lagged.

On Wednesday, the benchmark indices Sensex and Nifty witnessed significant gains as the Reserve Bank of India maintained its policy interest rate at 5.5% for the second time in a row. This decision spurred renewed confidence among investors, particularly in banking stocks.

Market analysts attributed the rebound to the central bank's unexpected pro-market measures, despite the anticipated rate pause. Prominent advancers included Tata Motors and Axis Bank, while Bajaj Finance and Tata Steel lagged. The broader market perspective showed an optimistic recovery from an eight-day slump.

According to market data, foreign institutional investors offloaded stocks worth Rs 2,327.09 crore, while domestic investors responded by buying Rs 5,761.63 crore worth of equities. The US market's positive close also influenced investor sentiment, along with a slight increase in Brent crude prices.

(With inputs from agencies.)