ET Market Watch: Sensex surges over 700 points on RBI policy boost – News Air Insight

Hi, you’re listening to ET Market Watch. I’m Neha Vashishth. After eight straight sessions of losses, the Sensex bounced back 716 points to trade near 81,000, while the Nifty rose 1% to close above 24,800.

Tata Motors led the bluechip gainers at 5.5%, following its passenger and commercial vehicles demerger. Banks and financials also rallied, with HDFC, Kotak, ICICI, and Axis gaining on RBI’s pro-market steps.

Here’s what drove the surge today:

First, RBI policy: Rates were kept steady at 5.5%, but the central bank’s outlook on lower inflation and GST rationalisation boosted sentiment.

Second, banks: Measures like higher loan against shares and IPO financing limits are expected to improve credit flow.

Third, oversold markets: After an 8-day slump, bargain buying kicked in.

Fourth, rupee recovery: The rupee gained to 88.75 versus the dollar, helping equities.

Fifth, crude prices: Oil stayed under pressure, easing cost concerns for markets.

Sixth, global cues: US stocks closed higher, shrugging off government shutdown fears.

So, after days of selling pressure, Indian markets finally caught a breather, led by banks, Tata Motors, and positive macro cues.