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RBI Holds, Market Shrugs and Moves On

The most anticipated event of the week delivered exactly what the market had priced in — and the market reacted accordingly. RBI held the repo rate unchanged at 5.25 per cent with a neutral stance for the fourth consecutive meeting. GDP growth projection for FY27 kept at 6.7 per cent. Inflation forecast marginally trimmed to 5 per cent from 5.1 per cent earlier — a small but positive signal on the price trajectory.

Markets opened with a bang — Sensex surged 626 points and Nifty touched 24,669 at the open as crude dropped below $80 a barrel on renewed US-Iran dialogue. But the post-RBI euphoria faded quickly. By close, Nifty had settled at just 24,624 — up a mere 9.75 points for the day — while Sensex gained 152 points to end at 78,581. A classic buy-the-rumour, sell-the-news session. Sector rotation was sharp. Metals, auto, realty and PSU banks were the day's winners. Healthcare, pharma and private banks gave up gains as the rate-hold removed any near-term catalyst for those sectors. Shriram Finance, Grasim and JSW Steel were top Nifty gainers. Apollo Hospitals, Sun Pharma and SBI Life were the notable losers. The CAS effect continued to create Sensex-Nifty divergence at close — a pattern traders will need to get used to for the foreseeable future. With RBI out of the way, markets now return full attention to earnings season. Several major results are due this week and next.