Indian markets traded at day’s high levels in early afternoon session after the Reserve Bank of India (RBI) Governor, Sanjay Malhotra, led the Monetary Policy Committee (MPC) decided to slash the repo rate by 25 basis points to 5.25 per cent. Traders took note of report that Commerce and Industry Minister Piyush Goyal said that India has emphasised on the need to reduce trade barriers, and boost exports to Russia with an aim to bridge the widening trade deficit between the two countries. Goyal said there are huge opportunities to expand bilateral trade and there is a need to make it more balanced. On the global front, Asian markets were trading mostly in green ahead of the rate decisions by the US Fed and the Bank of Japan in the coming days.

The BSE Sensex is currently trading at 85660.68, up by 395.36 points or 0.46% after trading in a range of 85078.12 and 85666.88. There were 17 stocks advancing against 12 stocks declining on the index, while 1 stock remained unchanged. 

The broader indices were trading mixed; the BSE Mid cap index gained 0.01%, while Small cap index was down by 0.76%.

The top gaining sectoral indices on the BSE were IT up by 1.16%, TECK up by 0.95%, Realty up by 0.70%, Bankex up by 0.55% and Metal was up by 0.52%, while Capital Goods down by 0.69%, Industrials down by 0.50%, FMCG down by 0.44%, Utilities down by 0.26% and Power was down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.43%, Bajaj Finance up by 2.12%, HCL Tech up by 1.94%, Infosys up by 1.71% and SBI up by 1.58%. On the flip side, Hindustan Unilever down by 5.16%, Tata Motors Passenger down by 0.63%, Trent down by 0.56%, Sun Pharma down by 0.53% and Eternal down by 0.49% were the top losers.

Meanwhile, Monetary Policy Committee (MPC) under the Reserve Bank of India (RBI) at its fifth bi-monthly monetary policy for the current fiscal (FY26) has unanimously decided to cut the short-term lending rate or repo rate by 25 basis points (bps) to 5.25 per cent, in a bid to further bolster economic growth, which rose to a six-quarter high of 8.2 per cent in the second quarter of the current financial year. Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.50 per cent. The MPC decided to continue with the neutral stance. 

Headline CPI inflation declined to an all time low in October 2025. The faster than anticipated decline in inflation was led by correction in food prices, contrary to the usual trend witnessed during the months of September-October. Core inflation (CPI headline excluding food and fuel) remained largely contained in September-October, despite continued price pressures exerted by precious metals. Excluding gold, core inflation moderated to 2.6 per cent in October. The projections for average headline inflation in 2025-26 and Q1:2026-27 have been further revised downwards. Core inflation, which had been rising steadily since Q1:2024-25, eased at the margin in Q2:2025-26 and is expected to remain anchored in the period ahead. Both headline and core inflation are expected to be around the 4 per cent target during the first half of 2026-27. The underlying inflation pressures are even lower as the impact of increase in price of precious metals is about 50 bps. CPI inflation for 2025-26 is now projected at 2.0 per cent with Q3 at 0.6 per cent; and Q4 at 2.9 per cent. CPI inflation for Q1:2026-27 and Q2 are projected at 3.9 per cent and 4.0 per cent, respectively.

On the economy front, in India, real gross domestic product (GDP) registered a six-quarter high growth of 8.2 per cent in Q2:2025-26, underpinned by resilient domestic demand amidst global trade and policy uncertainties. On the supply side, real gross value added (GVA) expanded by 8.1 per cent, aided by buoyant industrial and services sectors. Economic activity during the first half of the financial year benefited from income tax and goods and services tax (GST) rationalisation, softer crude oil prices, front-loading of government capital expenditure, and facilitative monetary and financial conditions supported by benign inflation. Real GDP growth for 2025-26 is projected at 7.3 per cent, with Q3 at 7.0 per cent; and Q4 at 6.5 per cent. Real GDP growth for Q1:2026-27 is projected at 6.7 per cent and Q2 at 6.8 per cent.  

The CNX Nifty is currently trading at 26157.90, up by 124.15 points or 0.48% after trading in a range of 25985.35 and 26159.45. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 2.77%, Bajaj Finserv up by 2.42%, Bajaj Finance up by 2.14%, HCL Tech up by 2.02% and Hindalco up by 1.94%. On the flip side, Hindustan Unilever down by 5.19%, Interglobe Aviation down by 2.86%, Tata Motors Passenger down by 0.62%, Trent down by 0.59% and Sun Pharma down by 0.51% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 185.18 points or 0.66% to 27,980.89, Hang Seng advanced 177.1 points or 0.68% to 26,113.00, KOSPI increased 71.54 points or 1.74% to 4,100.05, Shanghai Composite strengthened 27.02 points or 0.69% to 3,902.81 and Jakarta Composite was up by 15.78 points or 0.18% to 8,655.98. On the flip side, Straits Times fell 10.21 points or 0.23% to 4,524.93 and Nikkei 225 was down by 638.42 points or 1.27% to 50,390.00.