Indian Markets Rebound as Investors Await RBI Policy Signal

New Delhi – India’s key stock indices edged higher on Thursday, breaking a four-day losing streak and offering investors a renewed sense of optimism ahead of the central bank’s policy decision.

Both the Nifty and the Sensex registered modest gains, reversing recent declines and signalling steady sentiment even amid global uncertainties.

The Nifty ended the day marginally higher at 26,033.75, while the Sensex closed at 85,265.32, supported by strength across select sectors.

This rebound follows a week of volatility in which the benchmarks had slipped after touching record highs just days earlier.

Technology stocks led the upward movement, buoyed by a softer rupee that enhanced earnings potential for export-driven firms.

The IT index climbed noticeably for a second consecutive session, a sign that investor confidence in India’s tech sector remains resilient.

Market participants noted that clearer communication from the monetary authorities will be crucial in sustaining stability.

The Reserve Bank of India is set to announce its latest rate decision on Friday, drawing attention from investors across domestic and global markets.

India’s strong economic performance has sparked debate over the necessity of a rate cut, especially as currency pressures persist.

Even before new economic data arrived, earlier projections anticipated a measured 25-basis-point reduction.

Analysts say the central bank faces a challenging balance between nurturing growth and ensuring price stability.

The coming policy announcement is expected to clarify the regulator’s stance amid mixed global economic signals.

Foreign institutional investors continued to adjust their positions, with outflows seen earlier in the week as part of broader global risk shifts.

Still, domestic market confidence has remained intact, supported by resilient corporate earnings and steady consumer demand.

Sector-wise performance reflected cautious optimism, with nine of sixteen major indices ending the session in positive territory.

This broad-based strength offered a foundation for market recovery after days of subdued trading.

Financial stocks showed some softness, influenced by marginal dips in key private lenders.

However, the sector remains supported by robust loan growth and a stable economic outlook heading into the next quarter.

Small-cap and mid-cap indices showed mixed movement, indicating measured investor participation across segments.

Such patterns reflect selective buying as traders evaluate near-term market cues.

Corporate developments also shaped the trading day, adding momentum to individual stocks.

Petronet LNG gained sharply following its agreement with ONGC on a long-term ethane services arrangement.

Biocon saw downward pressure after announcing plans to increase its stake in its biosimilars unit, a move that analysts believe may temporarily affect shareholder value.

Even so, the company’s strategic expansion underscores its long-term presence in the global healthcare market.

IndiGo shares eased for a fifth straight session as the airline managed operational challenges, though industry observers expect stabilisation once scheduling adjustments are completed.

Despite short-term pressures, India’s aviation sector continues to show strong recovery trends this year.

As markets transition toward the RBI announcement, the overall sentiment remains cautiously positive.

Investors are looking for a clear signal on policy direction, confident that India’s robust economic fundamentals will continue to support long-term market strength.

With domestic demand strong, corporate performance stable and global conditions gradually improving, India’s equity markets appear well-placed for sustained resilience.

Thursday’s rebound signals that investor confidence remains intact as the country enters a critical monetary policy window.