Synopsis : Indian stock markets continued their upward momentum on Friday after the RBI kept repo rates unchanged and maintained a neutral policy stance. Media, realty, and financial stocks led gains as investors welcomed measures aimed at boosting foreign capital inflows.
Indian benchmark indices traded higher on Friday, with the BSE Sensex gaining over 100 points and the Nifty 50 staying above the 23,400 mark as investor sentiment remained upbeat following the latest Reserve Bank of India Monetary Policy Committee (MPC) decision.
The rally marked the second consecutive session of gains after RBI Governor Sanjay Malhotra announced that the MPC had:
- Kept the repo rate unchanged
- Maintained a neutral monetary policy stance
The central bank cited growing global uncertainties and external risks while opting for policy stability.
Media Stocks Lead the Rally
Sectoral sentiment remained broadly positive across Dalal Street, with most Nifty sectoral indices trading in the green.
Top Performing Sectors
- Media
- Realty
- Financial Services
- PSU Banks
- Consumer Durables
The Nifty Media index emerged as the biggest gainer, surging over 3% during the session.
Banking and financial stocks also attracted strong buying interest after the RBI’s stable policy outlook.
Selective Profit Booking in IT and FMCG
While broader sentiment remained positive, some sectors witnessed mild profit booking.
Weakest Sectors
- Metal
- FMCG
- IT
- Oil & Gas
Analysts said investors rotated money into rate-sensitive and domestic-focused sectors while trimming positions in defensive and commodity-linked stocks.
India Announces Major Tax Relief for Foreign Investors
A major highlight of the day was the government’s decision to exempt:
- Foreign Institutional Investors (FIIs)
- The Bank for International Settlements (BIS)
from capital gains tax on:
- Interest income
- Sale of government securities
The move is aimed at:
- Attracting stable foreign capital
- Boosting demand for Indian government bonds
- Supporting the rupee amid global economic uncertainty
Experts believe the reform could strengthen India’s position in global debt markets.
Rupee and Bond Market Sentiment Improve
The policy measures helped improve investor confidence in India’s financial markets.
The announcements are expected to:
- Increase foreign fund inflows
- Improve liquidity in debt markets
- Reduce pressure on the Indian rupee
Market participants welcomed the RBI’s balanced approach amid volatile global conditions.
Global Markets Trade Weak
Despite gains in Indian markets, global equities remained cautious.
Global Market Updates
- S&P 500 futures fell 0.6%
- Japan’s Topix slipped 0.1%
- Australia’s S&P/ASX 200 declined 0.7%
- Hong Kong’s Hang Seng fell 0.4%
- Euro Stoxx 50 futures remained largely flat
Global sentiment remained subdued due to concerns over slowing growth and geopolitical tensions.
Why Markets Rose Today
Key Market Drivers
- RBI keeps repo rate unchanged
- Neutral monetary policy stance
- Tax exemption for foreign investors
- Strong rally in media and financial stocks
- Expectations of stable foreign capital inflows
Analysts believe domestic markets remain relatively resilient despite weak global cues.
Conclusion
Indian markets extended gains for a second straight session after the RBI maintained policy stability and announced investor-friendly reforms. Strong buying in media, realty, and financial stocks helped offset weakness in IT and commodity-linked sectors, while tax relief measures boosted confidence among foreign investors.
Disclaimer : This article is for informational purposes only and should not be considered financial or investment advice. Investors are advised to consult certified financial professionals before making investment decisions.
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