Dalal Street’s sharp rebound on Wednesday ended an eight-session losing streak, giving investors a much-needed boost amid cautious optimism. The S&P BSE Sensex surged 660.64 points to 80,928.26, while the NSE Nifty50 climbed 185.70 points to 24,796.80 as of mid-day. The rally was broad-based, with gains led by auto, private banking, pharma, and media stocks.
Market strategists attributed the upswing to the Reserve Bank of India’s recent policy stance. During its Monetary Policy Committee (MPC) meeting, the RBI kept the repo rate steady at 5.5% and maintained a neutral outlook, signaling that inflation remains under control while growth prospects stay resilient. The central bank revised its inflation forecast downward to 2.6% for FY26, citing lower food prices and GST cuts, while projecting GDP growth at 6.8%. Analysts noted that the central bank’s guidance on potential rate cuts in the future encouraged renewed buying interest across sectors.
Auto stocks were among the biggest contributors to the rally, with Tata Motors gaining 3.35% following the official demerger of its commercial vehicle and passenger vehicle businesses on October 1. The split, approved by the National Company Law Tribunal, is expected to improve capital allocation, unlock shareholder value, and allow each division to focus strategically on its core business. Nifty Auto rose 0.59%, supported by other major auto players that followed Tata Motors’ lead.
Beyond autos, the broader market saw strong sectoral participation. Media stocks led the gains with a 2.53% jump, while private banks rose 1.81%, financial services 1.25%, healthcare 1.08%, and pharma 1.04%. Energy and IT indices posted modest gains, with Nifty Oil & Gas up 0.43% and Nifty IT rising 0.42%. Realty, FMCG, and consumer durables sectors also contributed to the rally. Conversely, some pockets of weakness persisted, with Nifty PSU Bank declining 1.15% and Nifty Metal slipping 0.36%.
Traders highlighted that while the session’s gains provided short-term relief, sustainability remains uncertain. Analysts emphasized the importance of broad-based buying to maintain momentum, especially with global trade tensions and sector-specific headwinds still influencing market sentiment. Nonetheless, RBI’s steady policy, festive-season optimism, Tata Motors’ restructuring, and strength in private banking and media shares offered immediate catalysts for recovery on Dalal Street.
