By Bharath Rajeswaran
(Reuters) -Indian shares held on to early gains on Wednesday, after the central bank kept interest rates steady as expected, even as bank stocks rose on easing rules for acquisitions lending.
The central bank maintained a rate pause for the second straight policy meeting, after 100 basis point rate cuts in the first half of 2025, as it awaited the impact of the frontloaded rate cuts and tax cuts amid lingering trade worries.
The Nifty 50 rose 0.26% to 24,675.6 and the BSE Sensex added 0.32% to 80,524.3, as of 11:01 a.m. IST.
“For markets, this pause coupled with dovish guidance is likely to be viewed positively and equities may benefit from sustained liquidity support, benign inflation,” said Anil Rego, founder and fund manager at Right Horizons PMS.
Eleven of the 16 major sectors advanced, with gains led by financials and banks, which gained about 0.7% each.
The realty index trimmed gains to 0.5% after rising 1% ahead of the rate decision.
“The real estate sector had hoped for a further cut to support housing demand, particularly in the affordable segment,” said Shishir Baijal, chairman and managing director of Knight Frank India.
The broader small-caps and mid-caps traded flat.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)
