Markets see a robust day in green; Kotak Bank shares gain more than 3%

Indian equity markets ended the day in green today, after RBI’s monetary policy announcement. Nifty 50 ended the day, up by 225.20 points or 0.92%. Sensex ended the day, up by 715.70 points or 0.89%.

RBI keeps repo rate unchanged

RBI kept repo rate unchanged at 5.5% today. It kept its monetary policy stance at Neutral. Dhiraj Relli, MD & CEO, HDFC Securities, said after the monetary policy announcement, “ The RBI’s MPC has delivered a dovish pause today, balancing confidence over improving inflation dynamics with a prudent acknowledgment of persistent global risks and recent domestic reforms. The policy stance remains flexible. We expect a 25-basis point rate cut in December 2025, with potential for additional easing if growth surprises negatively. The 10-year yield should be between 6.40% – 6.60% over the coming quarter. USD/INR trade may show a modest depreciation bias, with RBI poised to act against undue currency swings. For now the message from MPC is clear:  Pause, consolidate and ensure transmission – while keeping all options open amid an evolving global and domestic backdrop.”

Top Gainers & Losers

Top 3 gainers at Nifty 50 today were Tata Motors, Shriram Finance, and Kotak Bank. Top 3 losers were Bajaj Finance, Ultratech Cement, and State Bank of India. Kotak Bank’s stock was the top gainer among banking stocks today. It ended the day, up by 3.76% at Rs 2,067.70.

Gains were broad based

All the broad market indices ended the day in green today. Nifty Microcap 250 index was the top gainer among broad market indices. It ended the day, up by 1.39%. All the sectoral indices, except for Nifty PSU Bank index, ended the day in red. Nifty PSU bank index ended the day, down by 0.37%. Nifty Media Index was the top gainer among sectoral indices. It ended the day, up by 3.97%. Among media stocks, Zee Entertainment shares gained 1.67% today.

Stocks of many banks gained after RBI kept interest rate unchanged. Banks’ net interest margin may remain higher due to RBI not cutting down the interest rate today.  Nifty Bank Index closed the day, up by 1.30%.

Market breadth was highly positive

Market breadth was highly positive today. 2199 stocks gained at NSE. 874 stocks declined. This indicates that gains were very broad based today, across sectors and capitalizations. Market volatility also came down. Nifty India VIX index declined by 7.02%.

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Source: NSE