Markets climb as RBI holds rates, hints at REIT lending boost
Markets climb as RBI holds rates, hints at REIT lending boost
Indian shares end higher, led by FMCG and banks, after RBI keeps rates steady and signals possible lending to REITs.
Indian shares closed higher on Friday as a cautious trading session gave way to late buying in select stocks, lifting both the Sensex and Nifty. The benchmark indices saw gains with the Sensex edging higher by a few hundred points and the Nifty climbing modestly, helped by strength in FMCG counters and private banking names. The session reflected investor optimism that was punctuated by a positive policy backdrop rather than dramatic moves.
The Reserve Bank of India kept policy rates unchanged and signaled the possibility of allowing banks to lend to real estate investment trusts, a move markets interpreted as supportive for the real estate sector. This policy stance offered a cushion for lenders and developers alike, even as other global cues remained mixed.
Trading remained volatile through the day, but buyers returned in the latter part of the session, helping to lift the major benchmarks. The day’s recovery was led by FMCG stocks and private banks, with ITC and several banking names among the top gainers as traders priced in steady policy signals and the potential for REIT lending to unlock real estate capital.
Looking ahead, analysts cautioned that while the RBI decision provides comfort, the market will continue to watch policy commentary and macro data closely. The potential expansion of lending to REITs is seen as a likely tailwind for real estate stocks, though investors will remain selective as volatility persists in a data-driven environment.
Overall, the session ended on a positive note, reinforcing the view that the market’s near-term tone remains constructive as policy and sector dynamics interplay to guide buying interest.
