Sensex snaps losing run, banks on lending boost

MUMBAI: After sliding for eight consecutive sessions, the sensex on Wednesday rallied 716 points or 0.9% to close at 80,983 points even as RBI maintained status quo on interest rates. After a slow start to the session, the index gained pace in the late session, and banks led the gainers.Bank stocks rallied as the central bank announced a host of decisions beneficial to the banking and other sectors including increasing the limits to lending against shares, reducing risk weights for NBFCs for infra projects and relaxing exposure norms for capital markets.

Up 716 in a day

On the NSE, Nifty rallied in the late session and closed 225 points or 0.9% higher at 24,836 points.Among the sensex constituents, HDFC Bank, ICICI Bank and Kotak Bank contributed the most to the day’s rally. RBI’s rate-setting committee left interest rate unchanged, but raised India’s expected GDP growth rate for FY26, which was a positive for the investors on Dalal Street.On Wednesday, RBI made a five-fold increase to the upper limit for loan against shares to Rs 1 crore per person. It increased the maximum limit for financing of IPOs by 2.5 times to Rs 25 lakh per person. The central bank also removed the ceiling on lending against listed debt securities.