Sensex Surges as RBI Holds Rates: Markets React Positively

The BSE Sensex soared over 550 points in morning trade after the Reserve Bank of India maintained its 'neutral' stance on monetary policy, which might lead to future rate cuts. Banking and IT stocks drove the market's positive trend, with major gains by several Sensex companies.

The BSE Sensex climbed over 550 points in early trading on Wednesday, returning to the 82,000-level. This surge followed the Reserve Bank of India's decision to maintain a 'neutral' stance on its monetary policy, a shift that could prompt future rate cuts.

The Sensex's climb was supported by vigorous buying in banking and IT sectors, according to market traders. Major gainers in the 30-share index included State Bank of India, Axis Bank, Bajaj Finance, and Tata Motors, while Nestle India and ITC experienced declines.

Despite unchanged policy rates from RBI, in contrast to rate reductions by the US Federal Reserve, the market's upward trajectory reflected investor optimism. Domestic Institutional Investors' substantial equity purchases further bolstered the market.

(With inputs from agencies.)