Indian Stock Markets Close Higher as RBI Holds Rates Steady

The Indian stock market closed the week on a positive note, with key indices gaining ground. The benchmark Sensex rose by 266 points to settle at 84,658. The broader Nifty 50 index climbed 69 points to close above the 25,650 mark. This upward movement came on a day when the Reserve Bank of India announced its latest monetary policy decision.

RBI Maintains Status Quo on Interest Rates

The Reserve Bank of India’s Monetary Policy Committee kept the policy repo rate unchanged at 5.25 percent. This decision marks the eighth consecutive time the central bank has held rates steady. The RBI’s stance remains focused on withdrawing accommodation to ensure inflation aligns with its target. Investors viewed the decision as a sign of stability, which supported market sentiment. The central bank’s commitment to bringing inflation down to 4 percent provided a clear direction for the economy.

Sector Spotlight: Cigarette Stocks Ignite

A notable highlight of the trading session was a powerful rally in cigarette stocks. Shares of major companies in the sector surged significantly. This jump followed announcements of price increases on key products. Investors often see such price hikes as a direct boost to company revenues and profitability. This sector-specific momentum contributed to the overall gains in the market, showcasing how individual industry news can drive performance.

Global Headwinds and Commodity Pressures

While Indian markets advanced, global cues were largely negative. Major markets across Asia and Europe retreated. This was primarily driven by a sharp selloff on Wall Street. Concerns over the sustainability of the artificial intelligence stock rally triggered profit-taking in U.S. technology shares. The ripple effect was felt worldwide. Furthermore, crude oil futures extended their recent losses. Falling oil prices can ease import costs for India but also signal concerns about global economic demand.

Rupee Logs Strong Weekly Performance

Beyond the equity markets, the Indian rupee delivered a standout performance. The currency logged its best week in over three years against the U.S. dollar. A combination of strong foreign fund inflows and intervention by the Reserve Bank of India supported the rupee. A stronger currency can help control imported inflation, which aligns with the central bank’s objectives. This robust weekly gain provided an additional layer of confidence for investors monitoring macroeconomic stability.

Market Outlook and Investor Sentiment

The trading week ended with a mix of domestic resilience and global caution. The Indian market’s ability to climb despite international selloffs highlights focused investor confidence in local economic policies and corporate earnings. The steady hand of the RBI, coupled with strong sectoral movements, provided underlying support. Moving forward, investors will watch for corporate results, monsoon progress, and global central bank actions. The market’s trajectory will depend on balancing domestic growth with navigating international volatility.