Indian equity markets traded with a positive bias on Wednesday after the Reserve Bank of India (RBI) kept its key policy rate unchanged, in line with market expectations. During the session, the BSE Sensex gained more than 400 points to trade near 78,850, while the NSE Nifty 50 remained close to the 24,700 mark. Positive sentiment following the RBI’s policy announcement, strength in realty and auto stocks, and continued buying in broader markets are the key factors that helped support the benchmark indices.

1. RBI Keeps Repo Rate Unchanged

The biggest factor supporting the market today was the RBI’s decision to keep the repo rate unchanged at 5.25%. The central bank maintained a cautious stance while expressing confidence in India’s economic growth. Investors welcomed the policy as it reduced uncertainty and reinforced expectations of stable borrowing costs for businesses and consumers.

2. Realty and Auto Stocks Lead the Rally

Real estate and automobile stocks were among the best-performing sectors today. The Nifty Realty index gained around 2.4%, while the Nifty Auto index advanced about 1.5%. The RBI’s steady policy outlook and hopes of sustained domestic demand encouraged investors to buy stocks from these sectors, helping lift the broader market.

3. Midcap and Smallcap Stocks Hit Fresh Highs

Broader markets continued to outperform the benchmark indices. Both the midcap and smallcap indices touched fresh record highs as investors remained optimistic about domestic growth. Strong participation beyond large-cap stocks indicates that buying interest remains healthy across different segments of the market.

4. Stable Monetary Policy Boosts Investor Confidence

Apart from keeping rates unchanged, the RBI reiterated that it would closely monitor inflation and global developments before taking any future policy action. The central bank’s balanced approach reassured investors that it remains focused on supporting economic growth while keeping inflation under control. This helped improve overall market sentiment.

5. Foreign Inflows Continue to Support Equities

Foreign investors have returned to Indian equities in recent weeks, providing additional support to the market. Although the rupee remains under pressure, continued capital inflows and the RBI’s foreign exchange measures have improved liquidity and helped keep investor confidence intact.

Key Technical Analysis

Sensex Technical Outlook

The Sensex is trading comfortably above the 78,800 level, indicating that the short-term trend remains positive. Immediate resistance is placed around 79,100-79,300, while support is seen near 78,400. As long as the index holds above this support zone, buyers are likely to remain in control. A move above 79,300 could lead to fresh upside momentum.

Nifty 50 Technical Outlook

The Nifty 50 is consolidating near the 24,700 mark after its recent rally. Immediate support is placed around 24,550, while resistance is seen near 24,800-24,900. The index continues to trade above its key short-term averages, suggesting that the broader trend remains positive. A sustained breakout above 24,900 could open the way for further gains.

Bank Nifty Technical Outlook

Bank Nifty is trading in a narrow range as banking stocks remain largely stable following the RBI policy announcement. Immediate support is placed near 57,800, while resistance is seen around 58,400. A decisive move above the resistance zone could trigger fresh buying, while holding above support would keep the short-term outlook positive.

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