Sensex, Nifty Rebound After Eight-day Losing Streak

(RTTNews) - Indian shares ended notably higher on Wednesday after eight straight sessions of losses. The rally was broad-based as investors found many reasons to buy.

After keeping the repo rate unchanged and maintaining its neutral stance, the Reserve Bank of India (RBI) said in its policy statement that the current macroeconomic conditions and outlook have created space for further policy easing to support growth.

The commentary highlighted that inflation has turned more benign and growth prospects remain resilient despite global trade uncertainties and tariff-related headwinds, that may weigh on growth in the second half of the year.

Investor sentiment was also underpinned by a weakening dollar and falling oil prices in international markets.

The U.S. dollar wobbled, hovering near a one-week low versus major peers, after the U.S. government shutdown commenced at midnight, forcing agencies to suspend all but essential operations.

Oil prices extended losses for a third consecutive session amid concerns that OPEC+ could move forward with a more aggressive production increase in November.

The benchmark BSE Sensex jumped 715.69 points, or 0.89 percent, to 80,983.31 while the broader NSE Nifty index closed up 225.20 points, or 0.92 percent, at 24,836.30.

The BSE mid-cap and small-cap indexes surged 0.9 percent and 1.2 percent, respectively.

The market breadth was strong on the BSE, with 2,802 shares rising while 1,353 shares declined and 136 shares closed unchanged.

Auto stocks were in the spotlight as Tata Motors' long-awaited demerger took effect.

Shares of Tata Motors soared 5.5 percent after the company officially split its commercial vehicle (CV) and passenger vehicle (PV) businesses into two separately listed entities.

Among other prominent gainers, Sun Pharma, ICICI Bank, Axis Bank, Trent and Kotak Mahindra Bank rose 2-3 percent.