Sensex, Nifty End Marginally Higher As RBI Holds Rates; Realty, Auto Outperform

Indian benchmark indices ended marginally higher on Wednesday after the Reserve Bank of India (RBI) kept interest rates unchanged, with gains in realty, auto and metal stocks offsetting profit booking following the monetary policy announcement.

The Sensex rose 152 points, or 0.19%, to close at 78,581, while the Nifty 50 gained 9.75 points, or 0.04%, to settle at 24,624.65. The broader market outperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 indices advancing 0.18% and 0.76%, respectively.

The Nifty's indicative closing value turned positive during the Closing Auction Session (CAS), standing at 24,661.30, up 46.43 points at 3:15 pm, before the official closing price was determined.

Realty, Auto Lead Gains After RBI Policy

The RBI's Monetary Policy Committee unanimously retained the repo rate at 5.25% while maintaining its neutral stance. The central bank also marginally raised its FY27 GDP growth forecast and lowered its inflation projection, signalling confidence in the domestic economy despite external risks.

Realty and auto stocks emerged as the top performers on expectations that stable borrowing costs would support demand during the festive season. Metal shares also gained after the RBI's improved growth outlook strengthened expectations of robust domestic demand.

However, markets surrendered a large part of their early gains as crude oil prices rebounded amid renewed concerns over tensions in West Asia, tempering investor sentiment.

Vinod Nair, Head of Research at Geojit Investments Limited, said the RBI's decision reflected confidence in the domestic economy while keeping future policy actions data dependent.

"The RBI's MPC has maintained the status quo while marginally upgrading FY27 GDP growth projection and lowering annual inflation estimates. However, a rise in crude prices following renewed concerns over West Asia tensions caused markets to pare gains. Realty, auto and metal stocks outperformed on expectations of stronger demand and supportive financing conditions," he said.

Nifty Likely To Stay Range-Bound

According to Rupak De, Senior Technical Analyst at LKP Securities, the benchmark index may continue to trade within a narrow range unless it breaks key technical levels.

"The Nifty remained range-bound after the RBI policy announcement, with 24,500 acting as an important support while the index failed to sustain above 24,700. In the near term, support is placed at 24,400, while 24,800 remains the key resistance. A decisive move above 24,800 could trigger the next meaningful rally," he said.