The Indian equity market witnessed a broad-based rally on Wednesday, with the RBI’s policy decision broadly in line with expectations but accompanied by a more constructive tone than in June, which buoyed investor sentiment.

Reflecting the uptrend, the 30-share BSE Sensex jumped 715.69 points to close at 80,983.31. During the day, it surged 800.81 points to 81,068.43. The 50-share NSE Nifty climbed 225.20 points to 24,836.30. Tata Motors jumped by 5.54%, followed by Kotak Mahindra Bank, Trent, Sun Pharma, Axis Bank, and ICICI Bank. 

“The central bank’s dovish stance, alongside an upward revision of India’s GDP growth forecast from 6.5% to 6.8%, reinforced confidence. Additional support came from five targeted measures to ease lending, including relaxed capital market exposure norms and enhanced infrastructure financing. Gains were led by banking and consumer stocks, while autos advanced on the back of healthy sales. Overall, the rebound reflects improving sentiment and hints at early signs of a potential shift in market direction,” said Vinod Nair, head of research, Geojit Investments.

“Markets staged a strong rebound after eight consecutive sessions of decline. Banking and financial stocks led the recovery, as the Nifty Bank and Nifty Financial Services indices gained over 1% each, supported by the RBI’s dovish stance that hinted at future rate cuts. Barring the PSU Bank index, which slipped 0.4% on profit-booking after its recent rally, all other sectoral indices ended in the green. NBFC stocks rallied 3–5% after the RBI introduced regulatory changes aimed at easing infrastructure financing,” said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.