Indian equity benchmarks Sensex and Nifty ended higher on Wednesday, supported by the Reserve Bank of India's Monetary Policy Committee (RBI MPC) decision to maintain interest rates and its upgraded FY27 GDP growth outlook.

Despite early gains during the trading session, the indices trimmed their advances as rising crude oil prices and escalating tensions in West Asia weighed on investor sentiment.

Sector performance was mixed. Auto and realty stocks outperformed the broader market, while IT shares came under selling pressure.

The Sensex closed up 152 points, and the Nifty 50 settled above the 24,600 level.

The RBI's decision to hold rates steady aligns with its ongoing assessment of inflation and growth dynamics, continuing a rate-pause stance the central bank has maintained across recent policy reviews. The upward revision to the FY27 GDP growth outlook signals confidence in the domestic economic trajectory, consistent with India's standing as one of the fastest-growing major economies.

However, gains were capped by external headwinds. Rising crude oil prices pose inflationary risks for India, which relies on imports for more than 80% of its crude oil needs, making the country particularly exposed to global energy price swings. Geopolitical uncertainties in West Asia add another layer of caution, as the region remains a critical node in global energy supply chains.

The divergence in sectoral performance reflected these crosscurrents, with domestically oriented sectors such as automobiles and real estate finding support, whereas export-driven IT stocks faced headwinds.

Source: Economic Times Markets