RBI Holds Repo Rate Steady at 5.25%; Sensex Rises, Nifty Trades Flat Amid Global Cues
Investors reacted to the Reserve Bank of India's unchanged policy decision and a dip in global crude oil prices, leading to mixed movements across key indices.
The story
Indian equities experienced a pullback on Tuesday, August 4, snapping a four-day winning streak. The BSE Sensex declined 210.08 points, or 0.27%, to close at 78,428.95, while the NSE Nifty 50 fell 159.40 points, or 0.64%, to settle at 24,614.90. [2, 11] This decline was largely attributed to profit booking, investor caution ahead of the Reserve Bank of India's (RBI) policy decision, and ongoing volatility stemming from the National Stock Exchange's new Closing Auction Session (CAS) for F&O stocks. [4, 7, 33] Banking, financial, and IT sectors were notable drags, with the Nifty Realty index losing over 2%. [2, 4, 33]
On Wednesday, August 5, markets opened higher, with the Sensex surging over 626 points, driven by strong global cues and a significant drop in Brent crude prices below $80 per barrel. [3] The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 5.25% for the third consecutive time. [5, 9] The central bank maintained the Standing Deposit Facility (SDF) rate at 5% and the Marginal Standing Facility (MSF) rate at 5.5%. [9] The RBI also projected India's GDP growth at 6.7% for the current financial year and revised its headline inflation forecast to 5% from an earlier 5.1%. [8] Despite the Sensex gaining 334.55 points, the Nifty traded largely flat, down 2.55 points, following the policy announcement. [9]
The tape
| Instrument | Last | Change |
|---|---|---|
| Sensex | 78,766.51 | +334.55 (+0.43%) |
| Nifty 50 | 24,612.35 | -2.55 |
| Bank Nifty | 57,907.20 | -340.75 (-0.58%) |
| USD/INR | 95.015 | -0.39% |
| India 10Y Yield | 6.7750% | |
| India VIX | 12.01 | -0.38 (-3.12%) |
Flows & data
FII Net Flows
Reading: +₹2,446.47 Cr (August 04, 2026)
Read: Foreign Institutional Investors were net buyers in the cash segment.
DII Net Flows
Reading: -₹936.14 Cr (August 04, 2026)
Read: Domestic Institutional Investors were net sellers in the cash segment.
Repo Rate
Reading: 5.25% (August 05, 2026)
Read: The RBI's Monetary Policy Committee kept the key lending rate unchanged for the third consecutive time.
FY27 GDP Growth Projection
Reading: 6.7% (August 05, 2026)
Read: The Reserve Bank of India projected India's GDP growth for the current financial year.
FY27 Headline Inflation Projection
Reading: 5% (August 05, 2026)
Read: The RBI revised its forecast for headline inflation for the current financial year.
IPOs & the primary market
The primary market saw new activity this week, with Aegeus Technologies Limited's SME IPO opening for subscription on August 4, 2026, with a price band of ₹100-₹105 per share, and closing on August 6, 2026. [21, 39] Ardee Industries Ltd's mainboard IPO also opened on August 5, 2026, offering shares in a price band of ₹50-₹53, aiming to raise up to ₹425.87 crore, with the issue closing on August 7, 2026. [21, 38] Meanwhile, the SME IPO for Anawil WIRE AND Engineering Limited, which opened on August 3, 2026, is set to close today, August 5, 2026. [21, 36] Two other SME issues, Fusion Klassroom Edutech Limited and G V Electricals LTD, concluded their subscriptions on August 4, 2026. [21, 40]
What we'll be watching
- Technocraft Ventures Ltd Mainboard IPO opens on August 7, 2026.
- LEAP India Ltd Mainboard IPO opens on August 7, 2026.
- Optimystix Entertainment India Ltd SME IPO opens on August 7, 2026.
- Dhoot Transmission Ltd Mainboard IPO opens on August 10, 2026.
- Aegeus Technologies Ltd SME IPO listing on August 11, 2026.
- Ardee Industries Ltd Mainboard IPO listing on August 12, 2026.
Reporting + analyst voices: grounded via Google Search at publish time.