Overview

• The Reserve Bank of India left the repo rate unchanged at 5.5% and signalled scope for future easing.
• FY26 GDP growth was raised to 6.8% while the inflation outlook was cut to 2.6%, indicating a more supportive policy stance.
• The RBI outlined reforms including removing overlap caps with group entities, a framework for bank-funded acquisitions, and a higher IPO financing limit of Rs 25 lakh per person.
• Equities snapped an eight-session slide as the Sensex and Nifty closed about 0.9% higher, led by gains in banking, auto and realty shares.
• Foreign investors remained net sellers for an eighth session even as domestic institutions bought, with officials staying vigilant on potential US tariff impacts.