Investors added Rs 15 lakh crore in the total market capitalisation of all BSE Sensex companies in just an hour. Read full report here

Rohit Mahajan, Founder and CEO plutos ONE 

The  Reserve Bank of India has become clear about what rate cuts are likely in the future. The focus will be on macroeconomic stability and controlling inflation rather than aggressively cutting rates, thereby, those looking for immediate relief from high-interest loan rates will need to moderate their expectations. Efforts will now be geared towards opportunities for long-term sustainable growth, with specific attention paid to strengthening the micro, small, and medium enterprises (MSMEs). The Reserve Bank's gradual approach to increasing their base lending rate, should lead to increased stability for all lenders as they build long-term resilience, even if short-term lenders continue to pay elevated rates.

Kinjal Shah, Vice President, Bombay Chartered Accountants Society

The RBI's repo rate is the key signal for borrowing costs, but borrowers should not expect an automatic or immediate pass-through in EMIs every time policy changes.

The RBI has already cumulatively reduced the repo rate by 125 basis points since February 2025, yet the full benefit has not uniformly flowed through to retail borrowers. Transmission remains uneven across lenders, loan tenures, and product types. The April 2026 MPC meeting is widely expected to hold the rate steady at 5.25% - not because the easing cycle is over, but because escalating global headwinds, particularly the West Asia conflict pushing crude above USD 100 per barrel, have introduced significant imported inflation risks that constrain further accommodation. 

Borrowers should not read every repo-rate move as an instant EMI change. The repo rate is only the starting point - the actual impact depends on how quickly banks transmit policy changes through the lending rates.

Varun Jhaveri, Founder & CEO, Bankyatri

The RBI has cut the repo rate by 75 basis points over the past year through two rate reductions. But with global uncertainties intensifying and inflationary pressures beginning to surface, further easing may become increasingly difficult. Slower fund rotation and tightening liquidity conditions are adding to the challenge. In such an environment, the RBI may need to rely more on liquidity infusion than on additional rate cuts to support the market while keeping inflation in check. Hence, a rate cut at this point might not be RBI's decision. 

Amit Somani, Deputy Head - Fixed Income, Tata Asset Management

"RBI delivered a Status Quo policy by keeping policy rates on hold. The stance is kept at Neutral. FY27 CPI Inflation outlook has been expectedly revised higher to 4.6% on account of higher energy prices and supply-chain disruptions due to West Asia conflict. GDP Forecast for 1H27 has been marginally revised lower while FY27 is forecasted at 6.9% driven by strong domestic impulses on account of sustained momentum in services sector, GST rationalisation, rising capacity utilisation, and healthy overall balance sheets. 

RBI continued to lay emphasis on keeping ample banking system liquidity to support economic activity. We expect RBI will continue to conduct Liquidity operations in a way that will keep overnight rate at lower end of the policy corridor.

While the positive development of temporary ceasefire in the West Asia war provides much needed relief across asset classes and currency, Geopolitical risk will continue to drive markets in the foreseeable future. We expect 10-yr G-sec to continue to respond to emerging Geopolitical situation, Crude and INR in near term, even as it trades in an attractive range of 6.85% - 7.15% range. Short-term yields are likely to trade lower from recent higher ranges on account of easing liquidity conditions post seasonal year end tightness. We expect 1-year CDs to move towards lower end of current range and head sub-7% levels, if geopolitical situation stabilizes."

Vijayta Raheja, chief operating officer, K Raheja Group

"Given the current global environment, with rising geopolitical tensions and the world operating under heightened uncertainty, a repo rate cut by the Reserve Bank of India was not anticipated. Inflation risks remain elevated, particularly for import-dependent economies like India, where volatility in global energy markets and uncertainty around oil supply continue to exert pressure. In such a scenario, maintaining the repo rate reflects a measured and prudent approach by the RBI, prioritizing macroeconomic stability over premature easing.

From a business perspective, this stability provides clarity and allows for more predictable planning, which is critical in sectors like real estate and hospitality. While a rate cut over the next six months would certainly act as a catalyst for growth and accelerate capex cycles, the current stance underscores the RBI's commitment to staying ahead of inflationary risks. Overall, the decision to hold rates should be seen as a positive signal of stability and disciplined policymaking in an uncertain global environment."

Aditya Agrawal, CFA, Chief Investment Officer at Avisa Wealth Creators 

Today's Reserve Bank of India monetary policy (April 8, 2026) kept the repo rate unchanged at 5.25 per cent with a neutral stance, providing a stable backdrop for equity markets and potentially supporting rate-sensitive sectors. In the bond market, yields are expected to remain range-bound, as the RBI's 6.9 per cent GDP growth projection and manageable inflation outlook help offset concerns around geopolitical tensions and elevated crude prices. Meanwhile, the rupee may remain broadly stable, supported by the RBI's commitment to managing external shocks and maintaining forex stability despite ongoing volatility in West Asia.

Radhika Rao, Senior Economist & Executive Director at DBS Bank

With the RBI MPC keeping rates on hold, the policy outlook has shifted from a "benign inflation, strong growth" scenario to a more cautious balancing act, as the central bank seeks to manage renewed inflationary pressures while sustaining growth. The neutral, data-dependent stance provides flexibility to respond if geopolitical risks, including a prolonged war, intensify. The RBI has highlighted concerns that a sustained supply-side shock could spill over into broader demand pressures. Given the primarily supply-driven nature of the shock, monetary policy would be a blunt and potentially ineffective tool in the near term to anchor inflation expectations. Elevated risks from oil prices and geopolitical tensions limit the scope for near-term easing, reinforcing a prolonged pause. Rate hikes would only be considered if second-round inflation effects begin to materialise more clearly, potentially driven by higher fuel prices and a subdued currency.

Ashish Bhatia, Founder & CEO at India accelerator

As geopolitical tensions ease and uncertainty begins to settle, investors have a unique window to double down on sectors that thrive in recovery cycles. 

Defence-tech and deeptech are no longer experimental, they're strategic bets as nations continue to prioritize self-reliance. Fintech, on the other hand, continues to compound quietly, strengthening the underlying rails of a more efficient, digitized economy.

These aren't short-term trades driven by sentiment. They're structural bets, anchored in how the next decade will be built. The real shift, though, is philosophical. Capital today isn't just chasing growth, it's underwriting resilience. Backing businesses that can absorb shocks, adapt quickly, and still deliver consistent compounding through cycles.

Vishal Vincent Tony, Managing Director, Aratt Developers

"The decision by the Reserve Bank of India to keep the repo rate unchanged at 5.25 per cent is a welcome move for the real estate sector. It ensures stability in home loan interest rates, which in turn keeps EMIs predictable and sustains buyer confidence, particularly in the mid-income housing segment, where purchasing decisions are highly rate-sensitive. At the same time, stable borrowing costs provide developers with greater financial visibility, enabling better planning and margin protection. We are also seeing continued resilience in the luxury and premium segments, which remain relatively insulated from interest rate movements. Additionally, in key markets like Bengaluru, the commercial real estate sector stands to benefit from predictable financing costs, supporting steady leasing activity. Overall, this decision reinforces stability across the real estate value chain and is poised to keep the sector in stable growth trajectory."

Binitha Dalal, Founder & Managing Partner, Mt. K Kapital

Santosh Agarwal, Executive Director & CFO, Alpha Corp Development Limited, said, "The RBI's decision to keep the repo rate stable at 5.25 per cent reflects a methodical approach to reinforce stability in the current environment of evolving global uncertainty. The decision will help to facilitate confidence among the various stakeholders of the real estate sector. For buyers, the stable repo rates will equip them with enhanced conviction in their buying decisions. Developers will also feel supported by the current decision as it directly aids them with confidence to launch projects with greater certainty. The stable repo rates will thus enhance the overall momentum of demand and ensure resilience in the real estate sector."

Mohit Goel, Managing Director, Omaxe Ltd.

"The RBI's decision to maintain the current policy stance reflects a calibrated approach to sustaining growth while ensuring macroeconomic stability. For sectors like real estate and infrastructure, continuity in the rate environment provides the confidence required for long-cycle investments and disciplined execution. What is equally important is the broader signal of stability, which supports housing demand, especially in emerging markets where infrastructure is driving real economic activity. As India continues its urbanisation journey, predictable monetary conditions play a key role in enabling planned development and capital deployment. For us, this is not just about sectoral momentum, but about contributing to a larger nation-building agenda, where housing and infrastructure work together to create more resilient and future-ready cities."

Abhay Mishra, CEO & President, Jindal Realty says, "The decision to hold the repo rate steady offers a sense of continuity at a crucial time for the real estate sector. It reassures homebuyers by keeping borrowing costs stable and helps sustain demand momentum. For developers, it provides clarity for planning and execution. Going ahead, policy support and improved liquidity will be key to unlocking the sector's full potential and ensuring steady, inclusive growth across markets."

Sadaf Sayeed, CEO, Muthoot Microfin

"By holding rates steady and maintaining a neutral stance, the RBI has reinforced confidence in the resilience of the economy. This calibrated approach ensures stability today while preserving flexibility to respond to evolving global and domestic dynamics."

Rajat Bokolia, CEO, Newstone says, "The recent RBI MPC meeting has decided to keep the repo rate unchanged at 5.25%, supporting the momentum for the real estate sector.  It translates into stable home loans, directly improving housing demand with better liquidity for developers. This will ensure developers to accelerate project launches and completion timelines, securing an environment of prosperity and reliance across key real estate markets."

Prakhar Agrawal, Director, Rama Group

"RBI's decision to maintain the repo rate at 5.25 per cent reflects a balanced and prudent approach amid evolving global uncertainties. This stability in interest rates is a positive for the real estate sector, as it sustains buyer sentiment and keeps home loan EMIs predictable for end-users. In an environment where inflation risks persist and global headwinds remain, a steady rate regime provides developers and homebuyers the confidence to plan long-term investments. We believe this move will continue to support housing demand, particularly in the mid-income and premium segments, while reinforcing overall market stability."  

Jitender Yadav, Director, Roots Developers, "The RBI's decision to maintain the repo rate at 5.25% is, a catalyst for renewed enthusiasm in the real estate sector. Stability in borrowing costs will make home loans more accessible which will increase demand of home buyers. This will also help developers to speed up project launches and improve completion timelines, strengthening an environment of growth and confidence across key housing markets. We look forward to a pragmatic environment for the real estate industry"

Amrita Gupta, Director, Manglam Group

The RBI keeping the repo rate unchanged at 5.25% and continuing with a neutral stance comes as a relief for the real estate sector. Stable interest rates help maintain buyer confidence and keep demand on track, even as global factors create some uncertainty. This kind of consistency matters, especially when homebuyers are sensitive to changes in EMIs. It also gives developers better visibility while planning launches and pricing in the near term." 

Niraj Kumar, Chief Investment Officer, Generali Central Life Insurance

The MPC has delivered a calibrated pause, balancing emerging upside risks to inflation with growing concerns on the growth front amid the ongoing West Asia conflict. With significant uncertainty around the conflict's trajectory-particularly its implications for energy and infrastructure-the Committee has prudently opted for a wait-and-watch stance.

From here, policy is expected to remain in an extended pause. The threshold for any future rate hike appears meaningfully high, likely contingent on a sustained supply shock that drives headline inflation persistently above target.

Overall, MPC stance carries a distinctly dovish undertone, reinforcing stability at a time when the global macro environment remains fraught with uncertainty.

Anil Godara, Founder and Managing Director, J Estates

We welcome the RBI's decision to maintain the repo rate at 5.25 per cent. This calibration would be significantly encouraging for the real estate and senior living segment for enhancing the viability of spaces that provide the ecosystem of residential living integrated with healthcare and wellness infrastructure. It will also have a rippling effect on the investor sentiment, characterised by strengthened investor confidence. Additionally, the calibration will also induce steady expansion of professionally managed real estate communities across key markets.   

Ashish Agarwal, Director, AU Real Estate

We welcome the RBI's decision to keep the repo rate unchanged. The decision will help sustain momentum in the real estate sector. Rate stability is an important element in building the buyer's confidence. This will ensure that buyers are making a more structured decision process for purchases. Although it will provide a steady demand to the housing market, it will definitely build the buyer's confidence in premium properties where the buyer is aligned to long-term value and quality. A consistent rate environment will help to maintain growth traction, encourage disciplined. 

The MPC held the repo rate at 5.25 per cent, with a neutral stance. It looks identical to last time but the ground has shifted considerably.

Last meeting, this was a pause as a result of strong domestic engines, inflation being under control, cumulative easing doing its work. This time, it's a pause to assess the current on-going geo-political situation.

The Middle East conflict has created a supply shock. Energy prices are now at levels last seen during the 2022 Russia-Ukraine war. Shipping through the Strait of Hormuz is disrupted. Fertiliser costs are rising, which matters for the kharif season. EIA projects Brent crude to average about $79/barrel in 2026, revised up significantly from $58/barrel projected last month.

On growth: still resilient, but the cushion has narrowed

FY27 GDP is projected at 6.9 per cent, lower than the 7.6 per cent clocked in FY26, due to the energy cost pressures and supply disruptions. The floor holds steady because domestic fundamentals are still going strong: capacity utilisation above the long-term average, broad-based credit growth, healthy reservoir levels, and continued government capex. Services remain buoyant.

Even Headline inflation was running at 2.7-3.2 per cent through January-February, well below the 4 per cent target.

But Urban households' 3-month inflation expectations jumped 60bps to 8.5 per cent in March. Which means urban consumers are anticipating more price pain ahead, even if actual headline CPI is only 3.2 per cent today. The gap between perceived future inflation (8.5 per cent) and actual inflation (3.2 per cent) is wide, which tells you sentiment is quite negative.

Rural households' current inflation perception rose 50bps to 5.6 per cent. This is their felt experience of prices, not a forecast. It's already higher than the actual CPI print, which suggests rural consumers feel prices rising more than the official index captures, possibly because their consumption basket is more exposed to food and fuel.

The RBI projects CPI at 4.6 per cent for FY27, peaking at 5.2 per cent in Q3.

So why hold?

Because this is a supply shock, not a demand problem. Rate cuts don't fix fertiliser shortages or crude oil spikes. The neutral stance preserves optionality in both directions. The RBI is watching how long the conflict persists, whether second-round effects materialise, and whether El Nino disrupts the kharif crop (62 per cent probability flagged for June-August emergence). Until there's clarity on at least some of those variables, moving rates would be premature.

What this means in practice

For borrowers, the lending rates from the prior easing cycle continue to work through the system. For investors, domestic demand themes hold; globally exposed and energy-sensitive sectors warrant closer monitoring. A phased, diversified deployment approach remains the sensible posture.

Poonam Tandon, Chief Investment Officer, IndiaFirst Life

The MPC has kept rates unchanged as per expectations. Risks to higher inflation due to the ongoing west Asia crisis, the MPC is going to be data dependent in the future and will be supportive in case of providing liquidity. The policy is expected to be on pause with a neutral stance. Policy is therefore supportive of growth and therefore equity and bond markets.

Gaura Sen Gupta, Chief Economist at IDFC FIRST Bank 

The Governor has emphasised policy flexibility to react to risks to growth and inflation. The Middle East crisis poses an upside risk to inflation and a downside risk to growth. The tone of the policy is neutral. We maintain the expectation of the RBI remaining on pause, as headline CPI inflation is not expected to breach the upper threshold of the inflation targeting band of 6 per cent. Meanwhile, remaining on pause and ensuring the provision of adequate liquidity will limit the downside risk to growth.

Ankit Agarwal, Managing Director, Alankit Limited

"The ceasefire between Iran - US conflict, is a significant development and will certainly help ease the global crude oil and gas crisis, thereby stabilising other economies. Considering the developments in West Asia, India's six-member Monetary Policy Committee, headed by the RBI Governor has unchanged the repo rate at 5.25%. The RBI has anticipated the inflation rate at 4% for the Q1 in FY27 and expects growth to accelerate to 7.6% from 7.4% earlier. The apex bank's pragmatic measure of not changing the repo rate for three consecutive years reflects India's strong economic fundamentals, even in the midst of the West Asia crisis. With projected GDP growth of 6.9% in FY27, the consumption and spending capacity of the general public will get a boost, which in turn will help the Fintech sector to operate and expand. The RBI's calibrated approach of keeping borrowing rates stable will support businesses and consumers in making predictable plans. Owing to the evolving nature of geopolitical risks, the RBI's neutral stance will ensure flexibility to deal with situations that might affect our economic policies. The MPC's decisions have opened doors for the Fintech sector to innovate, expand access to credit, and strengthen financial inclusion. Fintech companies stand ready to support households and businesses with transparent, digital-first solutions that align with the RBI's cautious yet growth-oriented stance."

Vikas Garg, Head - Fixed Income, Invesco Mutual Fund 

Amid a challenging backdrop, the MPC delivered a well‑balanced policy by maintaining the status quo on both the policy rate and stance. The RBI provided growth and inflation projections for FY27 under the new series at 6.9% and 4.6%, respectively, with potential risks stemming from the West Asia conflict. Apart from Middle East tensions, the El Niño impact on the monsoon needs to be closely monitored to assess its implications for inflation. The re‑affirmation of the RBI's commitment to providing sufficient liquidity is a welcome relief, as markets were concerned about tighter liquidity conditions amid currently low overnight yields.

Overall, the policy can be characterised as neutral to mildly dovish, as the RBI adopted a wait‑and‑watch approach in response to the evolving West Asia situation, while highlighting risks to both inflation and growth should the conflict persist. This policy stance is likely to help markets price out fears of any immediate rate hike under the flexible inflation‑targeting framework. Additionally, the morning announcement of de‑escalation in the West Asia conflict bodes well for market yields, which had moved sharply higher earlier. At current elevated yield levels, the risk‑reward dynamics have now turned favourable across the yield curve.

Pralay Mondal, MD & CEO, CSB Bank

"RBI has prudently maintained the Status Quo on the policy with a Data driven stance going forward. Reduction in Growth and increase in projected inflation are within the tolerance limits of current policy. The assurance on critical aspects of liquidity in a crisis period is reassuring."

Manish Agarwal, President, CREDAI Haryana & MD, Satya Group

"Stability, when intentional, is a policy signal in itself. The Reserve Bank of India's decision to hold rates reflects a balanced, forward-looking approach, prioritising long-term resilience over short-term shifts. For residential real estate, this is timely, as sustained end-user demand across mid-income and premium segments continues to drive a consumption-led cycle. A stable rate regime keeps home loan EMIs predictable, supporting buyer confidence and purchase decisions, while enabling better planning for developers and ensuring steady momentum across the sector."

Anup Garg, Founder and Director, World of Circular Economy (WOCE)

Geopolitical clashes have tended to highlight the fragility of energy systems reliant on oil supplies, motivating countries and enterprises to fast-track their path towards greener forms of energy production. This is where carbon capture and utilization - or carbon tapping as it is sometimes called - seems to be gaining importance as an essential intermediary step. Not only does it help in mitigating emissions generated by industries, but it also allows firms to use the captured carbon for the production of various goods.

With stability restored, the trend will continue towards investment in renewable energy sources and green hydrogen, alongside technology for managing carbon dioxide. For companies, the pressure to do so comes from both regulators and investors. This period marks a golden opportunity to make the necessary transition from one form of energy production to another.

Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS

The RBI's decision to maintain the repo rate and its neutral stance did not come as a surprise and was already priced in. For now, we believe this could be the end of the rate cut cycle, and the RBI will pause rates from here. Although a 2-week ceasefire has been announced, risks persist, posing a downward risk to GDP growth estimates and an upward revision risk to inflation estimates. The RBI has already revised its Q1/Q2 inflation/GDP estimates to reflect the dynamic geopolitical risks. However, any further escalation in the West Asia conflict that negatively impacts inflation or GDP estimates could possibly prompt the regulator to reverse the rate cycle earlier than anticipated.

For banks, Q4 appears to be a strong quarter with credit growth having picked up meaningfully; though, deposit competition remains intense. All eyes will remain on commentary regarding possible headwinds to growth due to geopolitical uncertainty, especially for MSMEs, Vehicle Finance, and Corporate credit in oil-sensitive sectors. While a ceasefire has been announced for 2 weeks, any further escalation in the West Asia war could impair credit momentum, at least in H1FY27. Margins would remain divergent with SFBs and Mid-sized private banks outperforming the larger banks. Commentary on NIM movement over H1FY27 remains critical, especially with CoD remaining sticky. Q4 is seasonally the strongest quarter for asset quality, and this quarter is expected to be no different. However, focus will remain on management commentary on potential risks arising from geopolitical uncertainty and its implications on lenders' asset quality. We would remain selective in our stock selection approach and favour banks with diversified portfolios, strong deposit franchise, adequate capitalisation, and attractive valuations. Presently, we prefer ICICI Bank, Kotak Mahindra Bank, and SBI amongst the larger banks, and Federal Bank, AU SFB, and Ujjivan SFB amongst the mid/smaller banks.

The Indian economy remained resilient in the financial year 2026. Private consumption and fixed investment contributed the most to the growth, while external demand remained soft, said the Reserve Bank of India Governor Sanjay Malhotra in the statement.

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RBI suspends due-diligence requirement for MSMEs for inclusion in various trade platforms to promote ease of doing business, says RBI Govenor

The monetary policy committee, chaired by the RBI Governor, meets every two months to review key economic indicators and determine the policy stance. Read full report here

The Indian rupee strengthened by 36 paise to open at 92.64 against the US dollar on Wednesday

The market-cap of all BSE-listed companies increased Rs 13.19 trillion to Rs 441.96 trillion, as against Rs 428.77 trillion at Tuesday's close. 

The Nifty India volatility index slumped 19.51 per cent to 19.88, which indicated that the expectation of near-term uncertainty has reduced. 

Belgium court backs Mehul Choksi extradition to India on six charges, ruling no risk of unfair trial; final decision now rests with government. 

Japan's Nikkei 225 and South Korea's Kospi were trading 4.97 per cent and 5.69 per cent higher, respectively. 

The price of 24-carat gold fell Rs 10 in early trade on Wednesday, with ten grams of the precious metal trading at Rs 1,49,830, according to the GoodReturns website. The price of silver also declined by Rs 100, with one kilogram of the precious metal selling at Rs 2,49,900.

Nifty 50: 22,968 +1.12%

BankNifty: 52,609 +2.06%

India VIX: 25.4

Brent: $108

The Thesis

InvestorAi is betting on a dual-engine recovery: IT services and metals. BankNifty outperformed Nifty by nearly 2x today, signaling institutional risk appetite is returning even as FIIs pulled Rs 8,700 Cr yesterday. With VIX at 25 and PCR at 1.43, put writers are building a firm floor - giving buyers cover to add exposure. IT conviction reflects rupee pressure from $108 crude translating into margin tailwinds, while metals picks align with commodity repricing and infrastructure capex momentum.

Where We're Concentrated

Heavy IT (four names including both highest-confidence picks) and metals (three names including both highest-conviction picks). Auto ancillaries add cyclical depth with four names spanning tyres and components. The thesis breaks if FIIs accelerate selling beyond yesterday's Rs 8,700 Cr - DII absorption has limits, and sustained outflows would crack the support that PCR is currently pricing in.

Conviction Picks

HIGHEST CONVICTION

Hindalco Industries

Strongest model agreement in today's book - commodity cyclicals gain as BankNifty's 2% outperformance confirms institutional risk-on appetite and aluminium pricing firms globally.

HIGHEST CONVICTION

Wipro

Matches Hindalco's conviction strength - rupee weakness from $108 crude creates margin tailwinds for IT bellwethers as the sector sees rotation from FII selling fatigue.

HIGHEST CONFIDENCE

HCL Technologies

Top confidence score reflects alignment on HCL's defensive earnings quality - exactly the profile institutional capital gravitates toward when VIX sits at 25.

HIGHEST CONFIDENCE

Oracle Financial Services

Sits at the intersection of IT services and financial infrastructure - precisely where BankNifty's 2% outperformance is directing capital today.

STRONG CONVICTION

Jindal Stainless

Specialty steel plays into the infrastructure capex narrative and supply chain diversification - a structural tailwind that persists regardless of daily FII flows.

One Thing to Watch

FII flows today. Yesterday's Rs 8,700 Cr outflow was among the heaviest in weeks. If FIIs moderate to below Rs 3,000 Cr in outflows - or flip to net buying - it confirms the rotation thesis and gives the IT/metals book room to run. If outflows accelerate past Rs 10,000 Cr, the PCR floor cracks.

Global markets are showing strong positive momentum. GIFT Nifty is up around 3 per cent, while US index futures have surged over 2 per cent, and Asian markets are gaining between 3-5 per cent. This rally is largely driven by improved sentiment after US President Donald Trump and Iran agreed to a two-week ceasefire to advance talks aimed at ending the conflict. A major boost has also come from the sharp drop in Brent crude prices, which have fallen about 13 per cent to below $95 per barrel. This decline follows Iran's decision to reopen the Strait of Hormuz, easing concerns about disruptions in global oil and gas supply. The reduced geopolitical tension in the Gulf region has raised hopes for a return to stable energy flows worldwide. GIFT Nifty is up by roughly 700 points (3 per cent), while the Dow Jones Index has climbed around 800 points (2.5 per cent). The combination of falling oil prices, easing tensions between the US and Iran, and a strong rally across Asian markets is supporting overall investor sentiment. Domestically, attention is now on the RBI's credit policy announcement scheduled for 10 am. While the central bank is expected to keep interest rates unchanged, market participants will closely watch its commentary, especially in light of recent geopolitical developments. Sectors such as oil marketing companies, tyres, paints, capital goods, gold finance, metals, and pipes are likely to benefit from the easing of tensions in the Middle East and the decline in crude oil prices.

The repo headline matters, but the real issue is transmission and the RBI's broader signal. For borrowers, even a 25 bps move only creates meaningful relief if lenders pass it through fully. For ex. on a Rs 50 lakh, 20-year home loan, that is roughly Rs 700-800 a month in EMI savings.

But this is one of those phases where markets may value policy credibility and inflation discipline more than another symbolic rate cut, especially with crude, currency, and imported inflation risks back in focus. That is why I believe the 1st market reaction will likely show up in bond yields, banking stocks, NBFCs, autos, and real estate, rather than in immediate retail borrowing behaviour.

Consumers also tend to respond more to actual EMI changes and loan approvals than to the policy headline itself. For households, cheaper credit only matters when the benefit actually shows up and is not offset elsewhere. 

The total market cap of BSE Sensex stood at Rs 4,29,26,309 at the close on Tuesday.