RBI rate cut hopes lift Sensex, Nifty; banks and Reliance lead gains

Sensex climbs 444 points and Nifty 131 on Thursday, with ICICI Bank and Reliance driving gains ahead of the RBI policy meet and amid supportive global cues

Benchmark equity indices rallied for the second consecutive day on Thursday as investors anticipated a rate cut by the Reserve Bank of India (RBI).

 

After gaining over 900 points in the session, the 30-share BSE Sensex succumbed to profit booking to close 443.79 points or 0.55 per cent lower to settle at 81,442.04. As many as 2,257 stocks advanced while 1,725 declined and 147 remained unchanged on the BSE. The NSE Nifty rose 130.70 points or 0.53 per cent to end the session at 24,750.90.

 

Reliance Industries advanced after JP Morgan raised its target price, citing improved earnings prospects. ICICI Bank gained on expectations on a third consecutive rate cut by the RBI on Friday, with subdued inflation providing room to prioritise economic growth. HDFC Bank also contributed to the gains, rising 0.5 per cent.

 

Sectorally, rate-sensitive stocks—including PSU banks, NBFCs, and auto—remained in focus. Pharma and healthcare indices rose over a per cent each amid optimism around a potential India–US trade deal, as American officials held talks in New Delhi. A dip in the 10-year US bond yield, reflecting a slowing US economy, further supported sentiment in emerging markets like India. 

 

 Siddhartha Khemka, head of research at Motilal Oswal Financial Services, said: “Markets are likely to consolidate with a positive bias, supported by favourable macro cues and sectoral momentum.”

 

Nearly two-thirds of Sensex constituents ended higher, with Eternal leading the pack—soaring 4.5 per cent and emerging as the third-largest contributor to the index’s gains.

 

 “The Nifty has reclaimed its 20-daily exponential moving average. Sustaining above this level is crucial for further upside; otherwise, profit-taking could resurface,” Ajit Mishra, SVP – research at Religare Broking said.

 

Going forward, global cues, including US trade negotiations and economic trends, will influence market direction.