Markets rebound after 8-day slump; Sensex jumps over 700 points post RBI policy

Market Overview - The equity benchmark indices ended an eight-session losing streak, driven by the Reserve Bank of India's decision to maintain the repo rate at 5.50% and a neutral policy stance [1][3] - The RBI's dovish stance and an upward revision of India's GDP growth forecast from 6.5% to 6.8% bolstered investor confidence [3] Sector Performance - Financial stocks received a boost from relaxed norms for acquisition-related lending, with the Bank Nifty rising over 1% due to optimism around enhanced lending capacities [1][7] - All sectoral indices, except for the Nifty PSU Banks index, closed in the green, with banking and media stocks leading the gains [7] Index Performance - Sensex increased by 715.69 points or 0.89% to close at 80,983.31, marking a significant recovery [4] - Nifty 50 rose by 225.20 points or 0.92% to end at 24,836.30, achieving its highest one-session gain since August 18, 2025 [5] Stock Movements - Tata Motors, Shriram Finance, and Kotak Mahindra Bank were among the top gainers, while Bajaj Finance and SBI saw declines [9] - The market breadth was positive, with 2,797 stocks advancing and 1,360 declining, indicating strong market participation [10] Smallcap and Midcap Performance - Smallcap stocks outperformed midcap stocks, with notable gains in KPIT Tech and Vodafone Idea, while ITC Hotels and Hindustan Petroleum faced declines [12][14] - The overall market sentiment reflects early signs of a potential shift in market direction, with significant movements in both smallcap and midcap segments [11]