Bulls prowl D-Street: Sensex jumps 716 points

Core Insights - Equity benchmark indices experienced a significant rebound after an eight-day decline, with the Sensex rising by 715.69 points or 0.89% to close at 80,983.31 [1][3] - The Reserve Bank of India (RBI) maintained key interest rates and revised its growth forecast for the current fiscal year to 6.8% from 6.5% [5][9] Market Performance - The 50-share NSE Nifty increased by 225.20 points or 0.92% to reach 24,836.30 [4] - Tata Motors led the gains among Sensex firms, surging by 5.54%, while Bajaj Finance and State Bank of India were among the laggards [4] RBI's Monetary Policy - The RBI's monetary policy committee unanimously decided to keep the repurchase rate unchanged at 5.5% and adopted a "neutral" policy stance [6] - The RBI's optimistic outlook on GDP growth and inflation expectations provided reassurance to investors amid concerns over US tariff impacts [7][8] Economic Indicators - The RBI's growth forecast for FY26 was raised to 6.8%, with inflation expectations trimmed to 2.6%, the lower bound of its target range [6][9] - Trade-related headwinds are expected to slightly lower forward-looking projections for Q3 and beyond, despite some offset from GST rate rationalization [9] Market Activity - Foreign Institutional Investors (FIIs) sold equities worth ₹2,327.09 crore, while Domestic Institutional Investors (DIIs) purchased equities worth ₹5,761.63 crore [10] - In the previous eight trading days, the BSE benchmark fell by 2,746.34 points or 3.30%, and the Nifty dropped by 812.5 points or 3.19% [10]