Sensex surges 685 points, Nifty reclaims 22,750 ahead of RBI policy outcome

Indian equity indices closed significantly higher on Tuesday as investors accumulated pharmaceutical, private banking, and oil & gas stocks while awaiting the outcome of the Reserve Bank of India’s policy meeting.

The Sensex rose 685.34 points, or 0.95 per cent, to settle at 73,067.81, while the Nifty advanced 220.35 points, or 0.98 per cent, to close at 22,776.10.

Market experts commented on the Nifty technical outlook, noting that a sustained move above 22,800 could pave the way toward the 23,000 mark.

“On the downside, immediate support is placed around 22,600, followed by 22,500. The RSI has moved into the mid-30s, indicating a gradual improvement in momentum, while the MACD histogram has eased further from its negative reading, suggesting that selling pressure is moderating,” market watchers stated.

Market sentiment remained positive throughout the session, with buying interest in heavyweight stocks helping benchmarks extend gains.

Investors largely stayed focused on the upcoming RBI policy announcement for cues regarding interest rates, liquidity conditions, and the central bank’s economic outlook.

Among the Nifty index constituents, Trent, BSE, and Kotak Mahindra Bank emerged as the top gainers, significantly contributing to the market’s upward surge.

The broader market also participated in the rally. The Nifty MidCap index climbed 1.08 per cent, while the Nifty SmallCap index outperformed with a gain of 1.56 per cent.

Pharmaceutical and chemical stocks led the sectoral advancement. The Nifty Pharma index emerged as the best-performing sectoral gauge, followed by the Nifty Chemical index.

Sensex surges 685 points, Nifty reclaims 22,750 ahead of RBI policy outcome

In contrast, information technology stocks witnessed some profit booking, making the Nifty IT index the biggest sectoral loser of the day.

Experts noted that optimism in domestic equities, coupled with expectations surrounding the RBI policy decision, supported sentiment despite lingering global uncertainties.

“The near-term market bias therefore remains cautiously constructive. The decline in crude prices has provided a meaningful tailwind and helped benchmarks recover for a second straight session, but the rebound still faces several macro risks,” analysts noted.