Rate-sensitive sectors led a sharp rally in the broader markets on Wednesday, with auto, real estate, banking and financial stocks surging after the Reserve Bank of India kept its
Investor sentiment was further buoyed by improving global cues following a ceasefire announcement between the United States and Iran, easing concerns around energy prices and geopolitical tensions.
The ’s six-member Monetary Policy Committee unanimously voted to keep the repo rate steady at 5.25 per cent, while retaining its neutral stance. RBI Governor Sanjay Malhotra said policymakers had adopted a “wait and watch” approach amid heightened uncertainty following the recent West Asia conflict, which had driven crude prices higher, weakened the rupee and disrupted trade flows.
Despite inflation remaining within the target band, the central bank flagged rising risks from volatile oil prices and potential second-round effects that could weigh on consumption and delay investment recovery.
Equity benchmarks responded positively to these domestic and global developments, with the rallying nearly 2,989 points and the gaining 890 points from the previous close. At around 12.20 pm, the Sensex was up 2,831.78 points or 3.80 per cent at 77,448.36, while the Nifty 50 rose 839.35 points or 3.63 per cent to 23,963.00.
Bank, auto and realty stocks jump
Broader markets outperformed, with both midcap and smallcap indices rising over 4 per cent. The Nifty Bank index surged more than 5 per cent to 55,552.25, while financials, auto, realty and PSU bank indices advanced between 5 per cent and 7 per cent.
Heavyweights Axis Bank, ICICI Bank, HDFC Bank, Yes Bank and SBI posted 4-6 per cent gains under Bank Nifty.
In the auto pack, Ashok Leyland, Samvardhana Motherson, Maruti Suzuki and TVS Motor Company rallied between 7 per cent and 13 per cent. Realty stocks such as Prestige Estates Projects, Phoenix Mills, Macrotech Developers and Godrej Properties gained 7 per cent to 8 per cent.
Market breadth remained firmly positive, with around 2,940 stocks advancing, 266 declining and 61 remaining unchanged out of 3,267 traded on the NSE. As many as 45 stocks hit their 52-week highs, while 10 touched 52-week lows. Additionally, 228 stocks were locked in upper circuits, compared to just 15 in lower circuits.
Nifty 50 movers
Among Nifty 50 constituents, I Shriram Finance, , Larsen & Toubro and Bajaj Finance were among the top gainers. On the other hand, Coal India, Oil and Natural Gas Corporation, Tech Mahindra, Nestle India and Sun Pharmaceutical Industries lagged.
In the midcap space, stocks like Ashok Leyland, Hindustan Petroleum Corporation Limited, L&T Finance, AU Small Finance Bank and BSE Limited rallied 8 per cent to 12 per cent, while Oil India Limited, National Aluminium Company, Marico and Lupin declined.
Among smallcaps, Pine Labs, Cholamandalam Investment and Finance Company, Nuvama Wealth Management, Five-Star Business Finance and Force Motors jumped 9 per cent to 15 per cent, while Garden Reach Shipbuilders & Engineers and Firstsource Solutions slipped around 2 per cent.
Meanwhile, the volatility index declined sharply by 21 per cent, indicating easing market anxiety and improving risk appetite among investors.