Sensex, Nifty close higher as RBI holds repo rate at 5.25%
Synopsis
The RBI's decision to hold the repo rate at 5.25% and nudge its inflation forecast lower gave Indian equities just enough reason to close in the green — but barely. With Nifty stuck below the 24,600 resistance wall and banking stocks dragging, the session underscored a market in wait-and-see mode, not conviction mode.
Key Takeaways
BSE Sensex rose 152.05 points to close at 78,581.00 on Wednesday, 5 August .
Nifty50 edged up 9.75 points to settle at 24,624.65 .
The RBI held the repo rate steady at 5.25 per cent and maintained a neutral policy stance .
India's GDP growth forecast retained at 6.7 per cent ; headline inflation forecast trimmed to 5 per cent from 5.1 per cent .
Nifty Metal , Realty , and Auto indices led sectoral gains; Nifty Bank and Nifty Private Bank were the key laggards.
Analysts peg 24,600 as the key resistance and 24,500–24,300 as the critical support corridor for Nifty.
Indian equity benchmarks ended Wednesday's session marginally in the green after the Reserve Bank of India (RBI) held the benchmark repo rate steady at 5.25 per cent and maintained its neutral policy stance, a decision that broadly matched market expectations. The BSE Sensex settled 152.05 points, or 0.19 per cent, higher at 78,581.00, while the Nifty50 edged up 9.75 points, or 0.04 per cent, to close at 24,624.65.
RBI Policy: Key Takeaways for Markets
The central bank retained its growth projection for the economy, forecasting India's gross domestic product (GDP) growth at 6.7 per cent for the current financial year. Notably, the RBI also trimmed its headline inflation forecast marginally to 5 per cent from an earlier estimate of 5.1 per cent — a slight relief for inflation-sensitive sectors. The policy outcome, while largely anticipated, reinforced a stable macroeconomic backdrop that kept investor sentiment from turning negative.
Market Breadth and Sectoral Performance
Broader markets outperformed the headline indices on the day. The Nifty MidCap index closed 0.18 per cent higher, while the Nifty SmallCap index advanced a more robust 0.7 per cent, signalling continued appetite for risk in the mid-and-small cap space. Sectoral performance was mixed. The Nifty Metal index led gains, followed by the Nifty Realty and Nifty Auto indices. Banking counters, however, remained under pressure — the Nifty Private Bank and Nifty Bank indices both ended lower and were the session's primary laggards.
Top Gainers and Individual Movers
Among individual Nifty constituents, Shriram Finance, Grasim Industries, and JSW Steel emerged as the top gainers, providing crucial support to the benchmark indices. Their outperformance helped offset the drag from banking stocks, which faced selling pressure in the wake of the rate hold.
Technical Outlook: Key Levels to Watch
Analysts flagged 24,500 as the immediate downside support for the Nifty, with the 24,400–24,300 zone forming the next line of defence. From a derivatives standpoint, the 24,600 strike carries the highest Call Open Interest, which analysts say explains the repeated resistance the index has encountered at that level. The 24,500 and 24,400 strikes hold the strongest Put OI concentration, underpinning the support base. 'A sustained close above 24,600 is required to confirm renewed bullish momentum. Until then, the index is likely to remain range-bound, with 24,500–24,300 acting as the key support corridor,' one market expert noted. This comes amid a broader pattern of consolidation that has gripped frontline indices over recent sessions, with investors awaiting fresh domestic or global catalysts to drive a decisive breakout.
Point of View
Which is precisely why the market moved so little — there was no surprise to trade. The more telling signal is the banking sector's underperformance: when rate-sensitive financials sell off on a rate-hold, it suggests the street is worried less about the rate itself and more about what a prolonged pause means for net interest margins. The marginal trim in the inflation forecast is welcome, but at 5%, price pressure remains elevated enough to keep the RBI's hands tied for at least another quarter. Until Nifty posts a convincing close above 24,600, the index is consolidating, not advancing.
NationPress
6 Aug 2026
Frequently Asked Questions
What did the RBI decide at its August 2025 policy meeting?
The Reserve Bank of India held the benchmark repo rate unchanged at 5.25 per cent and maintained its neutral policy stance at its August 2025 meeting. The decision was broadly in line with market expectations.
How did Sensex and Nifty react to the RBI policy decision?
The BSE Sensex rose 152.05 points, or 0.19 per cent, to close at 78,581.00, while the Nifty50 edged up 9.75 points, or 0.04 per cent, to 24,624.65. Gains were marginal, reflecting the fact that the policy outcome was widely anticipated.
What is the RBI's GDP and inflation forecast for the current financial year?
The RBI retained its GDP growth projection at 6.7 per cent for the current financial year and revised its headline inflation forecast slightly lower to 5 per cent, from an earlier estimate of 5.1 per cent.
Which sectors gained and which lagged on Wednesday?
The Nifty Metal index led sectoral gains, followed by Nifty Realty and Nifty Auto. Banking stocks were the key laggards, with the Nifty Bank and Nifty Private Bank indices both closing lower on the day.
What are the key technical levels for Nifty going forward?
Analysts identify 24,600 as the immediate resistance — the level where the highest Call Open Interest is concentrated. On the downside, 24,500 is the first support, with 24,400–24,300 forming the next critical defence zone. A sustained close above 24,600 is needed to confirm fresh bullish momentum.
