Indian Stocks Rally: Sensex Climbs 250 Points, Nifty Tops 23,450 Amid RBI Policy Hopes

Indian Stock Market Rises as RBI Keeps Policy Rate Unchanged

The benchmark equity indices, Sensex and Nifty, traded higher on Friday following the Reserve Bank of India's (RBI) decision to maintain the key policy rate. The RBI kept its policy repo rate unchanged at 5.25%, a move that contributed to a positive sentiment in the market.

At around 10:20 a.m., the Sensex was up 212.55 points or 0.29 percent at 74,572.56, while the broader Nifty advanced to 23,470.40, up 53.85 points or 0.23 percent. The appreciation of the rupee against the US dollar also played a role in the market's positivity, with the rupee rising 11 paise to 95.63 in early trade.

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The rupee's appreciation can be attributed to market participants waiting for the RBI policy decision, as well as encouraging news from the India-US trade discussions. Forex traders noted that the 96.00 zone remains a strong resistance area for USDINR, and if the RBI signals a cautious approach toward inflation and currency stability, the rupee could gradually move back towards the 95.00-95.20 region in the near term.

Strong buying in IT shares also contributed to the market's positivity, snapping a 2-day losing streak. IT shares rose amid value buying at lower levels, reversing the losses experienced in the previous two trading sessions.

Market analysts are closely watching the RBI policy outcome and management commentary, which will be key catalysts in determining the market's next directional move. According to Rajesh Palviya, Head of Research at Axis Direct, the near-term trend is likely to remain stock-specific until a decisive breakout emerges. A sustained move above 23,550 could trigger fresh buying interest and pave the way towards 23,700–23,800 levels. On the downside, holding above 23,300 remains crucial, as a breach of this support may invite profit booking and drag the index towards the 23,150–23,100 zone.