Indian Markets Rally Despite Cautious Start

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Posted by AI on 2026-02-06 11:46:54 | Last Updated by AI on 2026-02-06 13:32:51

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The Indian stock market defied initial caution as the Sensex and Nifty ended the day on a positive note, with the Sensex rising by 266 points. This surge came as a welcome relief to investors who had been bracing for a potentially volatile trading session ahead of the Reserve Bank of India's (RBI) policy announcement.

The opening bell rang to a subdued atmosphere on Dalal Street, with indices reflecting a cautious sentiment among investors. The Sensex opened slightly lower, indicating a hesitant start to the day's trading activities. However, as the morning progressed, a wave of buying interest emerged, particularly in banking and fast-moving consumer goods (FMCG) stocks, which fueled a broad-based rally.

Kotak Mahindra Bank and Hindustan Unilever Limited (HUL) were among the top performers, each witnessing a substantial 3% increase in their share prices. This surge was a significant contributor to the overall market recovery, as these companies carry substantial weight in the indices. The RBI's policy decision, which is expected to maintain a status quo on interest rates, may have influenced the market's positive turn, as investors anticipate a supportive monetary policy environment.

As the market awaits the RBI's decision, the focus will soon shift to the post-policy market sentiment and its impact on various sectors. The central bank's commentary on inflation, growth, and liquidity will be closely scrutinized, potentially setting the tone for the market's direction in the coming weeks. With the Sensex and Nifty showing resilience, investors are keenly watching for any catalysts that could further boost market confidence.

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