Indian benchmarks closed higher on Wednesday, August 5, 2026, after the RBI maintained the repo rate at 5.25% and raised its FY27 GDP growth forecast to 6.7%. While the Sensex gained 152 points to end at 78,581, markets faced pressure from rising global crude oil prices and volatility linked to the newly introduced closing auction session.
Indian stock markets concluded the trading session in positive territory on Wednesday, August 5, 2026, following the Reserve Bank of India’s (RBI) decision to keep the benchmark repo rate unchanged at 5.25%. The BSE Sensex gained 152.05 points to close at 78,581.00, while the NSE Nifty 50 ended slightly higher at 24,624.65, up 9.75 points.
The central bank’s decision to maintain a neutral policy stance provided the necessary comfort to investors. Along with the steady interest rate, the RBI boosted sentiment by raising its Gross Domestic Product (GDP) growth forecast for the fiscal year 2027 to 6.7%. Additionally, the central bank’s downward revision of inflation projections offered further reassurance, signaling that the economy remains on a stable growth trajectory despite global challenges.
Market participation was broad-based, with specific support observed in the auto, real estate, and metal sectors. These industries experienced buying interest, helping to lift the indices despite a somewhat volatile trading environment. The stability provided by the policy announcement allowed investors to look past broader macroeconomic concerns for the duration of the session.
However, the market session was not without challenges. Trading remained cautious due to rising global crude oil prices, which climbed to approximately $80.7 per barrel. Higher oil prices can increase import costs for India, which often pressures domestic profitability and inflation expectations. Geopolitical instability, particularly ongoing tensions in West Asia, also weighed on the sentiment of global and domestic investors alike.
Furthermore, market participants navigated volatility stemming from the implementation of the new Closing Auction Session (CAS) for Futures and Options (F&O) stocks. This procedural change contributed to intraday price swings, reminding traders that market dynamics are currently influenced by both structural policy changes and global macro factors.
Moving forward, investors are likely to monitor the impact of these global variables on domestic economic indicators. While the RBI's growth outlook provides a supportive framework, the sustainability of this market trend may depend on upcoming economic data releases, crude oil price movements, and how global geopolitical conditions evolve in the coming weeks.