RBI MPC Meet 2025: Nifty Gains 30 Points, Sensex Rises 100; Bank Index Lends Support

The Nifty has entered the new month on a slightly positive note after the Reserve Bank of India (RBI) has kept repo rate cut unchanged at 5.5%. The 50-stock index is up by around 30 points, reaching the 24,650 level. The Sensex also gained over 100 points, taking the 30-share benchmark closer to 80,400.

On the other hand, the Nifty Bank index showed resilience with a rise of nearly 60 points. Some of the biggest gainers in the Nifty 500 stocks segment are NMDC, Tata Invest, Lupic, Pfizer, HUDCO, Sun Tv, etc.

However, Bajaj Finance, Eternal, Bajaj Finserv and Bharti Airtel were among the laggards. In Asian markets, South Korea's Kospi traded in positive territory, while Japan's Nikkei 225 index quoted lower.

The Nifty has extended its losing streak to eight consecutive sessions, probably, the longest stretch of declines since March this year, when the index had slipped for 10 straight days.

On Tuesday, the Sensex declined 97.32 points or 0.12% to settle at 80,267.62, and the Nifty fell by 23.80 points or 0.10% to 24,611.10.

RBI MPC on Repo Rate Cut

Addressing the RBI MPC on October 1, Governor Sanjay Malhotra announced that the central bank has decided to continue with a "neutral policy stance". He said that growth-inflation dynamics have shifted since the August meeting.

"Rationalisation of GST is expected to have a dampening effect on inflation. Higher tariffs are likely to moderate export growth".

"Global uncertainties and tariff-related developments are expected to slow growth this year. It is prudent to wait for the impact of policy measures to play out before deciding on the next steps. Economic activity has remained resilient, with domestic momentum continuing into Q2," he added.

He also stated that the overall inflation has turned more benign, supported by a sharp decline in food prices. The MPC revised average headline inflation downward from 3.1% to 2.6%, while noting that the effects of front-loaded policy actions are beginning to materialise.

The RBI has earlier reduced the key short-term lending rate (repo) by 100 basis points in three tranches, beginning in February, amid declining consumer price index (CPI) based inflation.

But in the August bi-monthly monetary policy, the central bank opted for a status quo and took a wait-and-watch approach to assess the impact of US tariffs and other geopolitical developments on the domestic economy.