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The Hindu
Sensex gains 152 points in volatile session as RBI keeps policy rates unchanged
On August 5, 2026, the BSE Sensex closed up 152 points, influenced by the Reserve Bank of India's decision to hold key policy rates steady for the fourth consecutive meeting. The market experienced significant volatility, reflecting investor wariness amidst ongoing geopolitical tensions and new auction mechanisms affecting stock prices. Nonetheless, the RBI's optimistic outlook on economic growth supported a recovery in the financial markets.
MonitorConfidence: MediumShort term horizon
Published 5 Aug 2026, 13:35 UTC3 min read
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Summary
TL;DR
- BSE Sensex gained 152 points amidst volatile trading conditions.
- RBI kept policy rates unchanged at 5.25% after assessing economic conditions.
- The central bank raised growth forecast for FY27 to 6.7%.
- Key gains led by banking and auto sectors helped stabilize the index.
- Foreign institutional investors purchased ₹2,446.47 crore in equities.
Interesting facts
- The RBI is cautious amid inflation concerns related to global events.
- This is the fourth consecutive meeting where the RBI maintained policy rates.
- There is an introduction of a new auction mechanism affecting stock prices.