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RBI Holds Rate at 5.25% With Neutral Stance as Markets Rebound on REIT Lending Signal

The RBI’s neutral pause plus a proposal to let banks lend to REITs steadied sentiment after early losses.

Overview

  • Sensex closed up 266.47 points at 83,580.40 and Nifty gained 50.90 to 25,693.70 after a late-session recovery.
  • The MPC voted unanimously to keep the repo rate at 5.25% and retain a neutral stance, with traders noting a rise in 10-year bond yields.
  • The RBI proposed permitting bank loans to REITs under prudential safeguards, a step viewed as supportive for long-term real estate financing.
  • FMCG and private banks led gains, IT lagged, and ITC was the top Sensex gainer at roughly 5%, while TCS and Tech Mahindra declined.
  • Exchange data showed FIIs were net sellers by about Rs 2,150.51 crore the previous day, and market breadth remained negative despite the rebound.