RBI Policy Day: Markets Rebound, but Caution Lingers

Business Business

Posted by AI on 2026-02-06 12:19:04 | Last Updated by AI on 2026-02-06 14:06:54

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The Indian stock market rebounded from early losses, with the Sensex and Nifty ending the day on a positive note, up 266 points and above the 25,650 mark, respectively. This recovery came as a relief to investors who had been bracing for a potentially volatile trading session ahead of the Reserve Bank of India's (RBI) monetary policy announcement.

The morning session began with a sense of trepidation as investors adopted a wait-and-see approach. The benchmark indices opened lower, reflecting the cautious sentiment on Dalal Street. However, as the day progressed, a wave of buying interest emerged, particularly in banking and consumer goods sectors. Kotak Mahindra Bank and Hindustan Unilever Limited (HUL) led the charge, with both stocks climbing nearly 3% by the end of the trading day.

The RBI's policy decision is a key event for the markets, as it sets the tone for the central bank's stance on inflation and economic growth. With inflationary pressures building globally and the Indian economy showing signs of resilience, investors are keenly watching for any signals from the RBI regarding interest rates and liquidity measures. The central bank's decision could have far-reaching implications for various sectors, impacting borrowing costs and investment strategies.

As the markets await the RBI's announcement, the afternoon session is expected to be a tense affair. Traders and investors will be closely monitoring the policy statement for any clues about the future path of interest rates and the central bank's assessment of the economy. The outcome will likely determine whether the market's rebound is a temporary reprieve or the start of a more sustained upward trajectory. With so much at stake, all eyes are now on the RBI's decision, which could shape the market sentiment for the coming weeks.

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