Sensex gains 150 points; Nifty50 ends flat after RBI keeps rates unchanged

KUALA LUMPUR, 6 AUGUST 2026 —

The BSE Sensex closed 150.08 points higher at 78,579.03 on Thursday as the Reserve Bank of India held its repo rate at 5.25% for a third straight meeting. The Nifty50 ended virtually flat at 24,614.90, down just 113.15 points intraday before paring losses to settle near unchanged.

Indian equities trimmed their losses into the close after the central bank’s decision eased concerns that had driven the Sensex to an intraday low of 78,438.61 on Wednesday, when 13 of the 30 components fell. The previous session had ended 210.08 points lower at 78,428.95, snapping a four-session winning streak.

Traders said the RBI’s rate pause quelled some of the uncertainty surrounding the new Closing Auction Session for eligible F&O stocks, which had triggered sharp volatility in benchmark indices and derivatives markets since its rollout on Monday. The rupee firmed 0.17% to 95.2125 per US dollar after the decision, paring Wednesday’s decline to 95.40 as higher crude prices and a stronger greenback had weighed on the currency earlier in the week.

Thirty-five of the 50 Nifty stocks ended lower on Wednesday, with HCL Technologies the biggest laggard at minus 2.19%. Grasim led gainers at plus 2.53%. On Thursday, Mahindra & Mahindra, Trent and NTPC led advances after Wednesday’s broad-based selloff.

The RBI’s decision to maintain the repo rate at 5.25% and its “withdrawal of accommodation” stance matched the consensus forecast of 38 of 40 economists polled by Reuters. The central bank also retained its FY25 GDP growth projection at 7.2%.

Analysts attributed Thursday’s rebound to short-covering and reduced hedging pressure after the first full day of trading under the new auction mechanism. Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said the indices were recalibrating after Monday’s auction had lifted closing prices of heavyweight stocks.

“We are seeing prices move back toward levels set during continuous trading,” Radhakrishnan said.

Vinod Nair, head of research at Geojit Investments, said the combination of weekly expiry and the revised closing-price rule had temporarily skewed intraday trends. “The mechanism is still bedding in,” Nair said.

Vikram Kasat, director at PL Capital, said investors used the session to lock in profits on large-cap financial and IT stocks after the previous day’s broad rally. “The auction volumes are healthy, showing institutional demand remains intact,” Kasat said.

Brent crude futures rose 31 cents to $79.67 a barrel, partly offsetting gains from the RBI’s decision. The rupee had weakened to 95.40 intraday on Wednesday before the central bank’s pause.

Regional markets advanced after strong US tech earnings pushed Wall Street to record highs. Japan’s Nikkei jumped about 3%, South Korea’s Kospi gained more than 3%, and the MSCI Asia-Pacific excluding Japan index rose as risk appetite improved.

The Sensex has now erased two days of losses and is 0.27% above its 50-day moving average. The Nifty50 remains 0.12% below its 50-day average after Wednesday’s 0.46% decline.