Archive · 6 Aug 2026
RBI holds rates; Sensex gains 152 points in volatile session
Stock markets are places where people buy and sell small pieces of companies.
In India, the two most watched lists of companies are called the Sensex and the Nifty.
On Wednesday, the Sensex went up by 152 points, but it was a very up-and-down day, first rising and then falling before recovering.
The Nifty barely moved at all.
Around the same time, the Reserve Bank of India, which is like the bank for banks, decided to keep interest rates the same at 5.25 percent.
This was the fourth time in a row it kept rates unchanged.
The RBI wants to wait and see because a war in West Asia is making energy more expensive, which could push up prices.
The bank thinks India's economy will grow a bit faster this year, by about 6.7 percent.
A new way of setting closing stock prices also started this week, which made trading a little choppy.
In the end, investors bought more shares than they sold, so the market finished slightly higher.
The BSE Sensex closed 152.05 points (0.19%) higher at 78,581, while the Nifty edged up 9.75 points (0.04%) to 24,624.65 in a volatile session.
The Reserve Bank of India kept its repo rate unchanged at 5.25% for a fourth consecutive meeting, with the six-member MPC voting unanimously and retaining a 'neutral' stance.
The central bank raised its FY27 GDP growth forecast to 6.7% from 6.6%, citing resilient domestic demand, manufacturing, services and strong exports.
A new Closing Auction Session (CAS) mechanism for shares with F&O contracts became operational on Monday, causing wide divergence in the indices.
Brent crude rose 1.75% to USD 80.75 per barrel amid the West Asia conflict, while FIIs bought equities worth Rs 2,446.47 crore on Tuesday.
- Who
- The Reserve Bank of India's Monetary Policy Committee, headed by Governor Sanjay Malhotra, and investors trading on the BSE Sensex and NSE Nifty.
- What
- The RBI kept the repo rate unchanged at 5.25% for the fourth consecutive meeting, while Indian equity indices closed marginally higher in a volatile session.
- When
- Wednesday's trading session, during the RBI's fourth consecutive policy decision.
- Where
- India, on the BSE and NSE stock exchanges.
- Why
- The RBI opted to wait for clarity on whether higher energy costs triggered by the Iran war feed into broader inflationary pressures.
- Sensex close
- 78,581 (+152.05 points / +0.19%)
- Nifty close
- 24,624.65 (+9.75 points / +0.04%)
- Repo rate
- 5.25% (unchanged for 4th consecutive meeting)
- MPC stance
- Neutral (unanimous vote by 6-member committee)
- FY27 GDP growth forecast
- 6.7% (raised from 6.6%)
- Brent crude
- USD 80.75 per barrel (+1.75%)
- FII flows
- Net buying of Rs 2,446.47 crore (Tuesday)
- Sensex intraday range
- High of 79,055.38 / Low of 78,285.74