Sensex Rises 750 Points, Nifty Nears 24,850 After RBI Policy

On October 1, 2025, the Indian stock market witnessed a sharp rebound after the Reserve Bank of India (RBI) decided to keep the repo rate steady at 5.5%. 

The Sensex surged 754 points, or 0.94%, to close at 81,022.58, while the Nifty 50 gained 239 points, or 0.97 %, to settle at 24,850.6. Leading the rally were stocks such as Tata Motors, Axis Bank, Kotak Mahindra Bank, and Trent, while Bajaj Finance, SBI, Tata Steel, and UltraTech Cement ended in the red. 

Broader indices also participated in the uptrend, with the Nifty MidCap 100 advancing 0.29 % and the Nifty SmallCap gaining 0.57 %.

Why the Rally?

The rally was mainly driven by the RBI’s policy announcement. The central bank kept the repo rate unchanged at 5.5 % with a “Neutral” stance, which provided comfort to markets.

Additionally, the RBI introduced lending rule relaxations, including higher limits on loans against shares, listed debt, and IPO funding. The central bank also raised its growth forecast for FY26 to 6.8 % while lowering its inflation (CPI) projection to 2.6 %. These measures boosted market confidence and helped revive sentiment after 8 consecutive sessions of decline.

Impact on Sectors

Rate-sensitive sectors were among the biggest beneficiaries of the policy outcome. Banks and financials gained as the RBI allowed more freedom in acquisition financing and offered policy support to strengthen Urban Cooperative Banks. Real estate stocks also received a boost as stable interest rates improved housing affordability. The Nifty Bank index rose 1.29 %, with Kotak Bank, ICICI Bank, and Axis Bank climbing more than 2 % each. 

Read More: RBI Unveils New Digital Payment Authentication Rules: 2FA Mandatory, More Options Beyond SMS OTP from April 2026.

Conclusion

The RBI’s decision to maintain steady interest rates, along with an upgraded growth forecast and credit policy relaxations, lifted investor sentiment and pushed the markets higher. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.