RBI Policy: The Indian stock market benchmark indices, Sensex and Nifty 50, continued trading in the red on Friday after the Reserve Bank of India’s Monetary Policy Committee (RBI MPC) decided to keep the repo rate unchanged at 5.25%. The MPC also maintained a neutral policy stance. RBI governor Sanjay Malhotra further highlighted that the Indian economy remains on a strong footing.
Following the policy announcement, benchmarks fell to their day’s low but later pared losses to trade around 0.3% lower.
The Sensex fell as much as 368 points, or 0.44%, to its day’s low of 82,945.56, while the Nifty 50 shed 136 points, or 0.53%, to its intra-day low of 25,504.6. The Bank Nifty index traded 0.55% higher.
Rate-sensitive sectors were also trading negatively with Nifty Bank and Nifty Financial Services down 0.3% each, Nifty Auto losing over 1%, and Nifty Realty flat.
RBI Policy Result
The RBI MPC announced on Friday, February 6, that it had decided to keep the policy repo rate unchanged at 5.25%, while maintaining a “neutral” stance. RBI Governor Sanjay Malhotra said the decision reflected the strength of domestic economic fundamentals despite ongoing global uncertainties.
The move came after a 25 basis point rate cut in December, taking the cumulative reduction in the repo rate to 125 basis points since February last year.
Looking ahead, the Governor said the MPC would be guided by evolving macroeconomic conditions, with policy decisions anchored to the new series of GDP and inflation data. The central bank projected CPI-based retail inflation at 2.1% for FY26, indicating a comfortable inflation outlook.
Meanwhile, the RBI marginally raised its growth forecast for FY26, revising GDP growth to 7.4% from the earlier estimate of 7.3%.
