Mumbai, Oct 1 (PTI) Equity benchmark indices rebounded sharply on Wednesday after an eight-day slump, with the Sensex jumping 715.69 points, helped by buying in bank and financial stocks after the RBI left key interest rates unchanged and revised upward its growth estimates for the current fiscal to 6.8 per cent.

The 30-share BSE Sensex jumped 715.69 points or 0.89 per cent to settle at 80,983.31. During the day, it surged 800.81 points or 0.99 per cent to 81,068.43.

The 50-share NSE Nifty climbed 225.20 points or 0.92 per cent to 24,836.30.

From the Sensex firms, Tata Motors jumped the most by 5.54 per cent, followed by Kotak Mahindra Bank, Trent, Sun Pharma, Axis Bank, and ICICI Bank.

However, Bajaj Finance, State Bank of India, UltraTech Cement and Tata Steel were among the laggards.

The Reserve Bank of India expectedly left its key interest rates unchanged on Wednesday, as it waited for greater clarity on the impact of US tariffs as well as transmission of earlier rate cuts and recent tax reductions.

RBI Governor Sanjay Malhotra, however, signalled scope for easing in the coming months to support the economy from any possible hit from US tariffs.

The six-member monetary policy committee voted unanimously to keep the repurchase rate unchanged at 5.5 per cent and decided to continue with a "neutral" policy stance, giving it flexibility to move in either direction if needed in future.

"Markets rallied across the board on Thursday after the Reserve Bank of India lifted its FY26 GDP growth forecast to 6.8 per cent and trimmed inflation expectations to 2.6 per cent -- the lower bound of its target range. The upbeat outlook on growth and price stability came as a timely reassurance for investors, who had been jittery over the potential drag from steep US tariff hikes.

"RBI’s commentary helped restore confidence, signalling resilience in India's macro fundamentals despite global headwinds," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

The central bank raised its growth forecast for the fiscal year ending March 2026 to 6.8 per cent from 6.5 per cent, but the governor said the forward-looking projections for Q3 (October-December) and beyond are expected to be slightly lower than projected earlier, primarily due to trade-related headwinds, despite being partially offset by the impetus provided by the rationalisation of GST rates.

In Asian markets, South Korea's Kospi settled in positive territory, while Japan's Nikkei 225 index ended lower. Markets in China were closed for the National Day holiday.

Stock markets in Europe were trading higher.

US markets ended higher on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,327.09 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought equities worth Rs 5,761.63 crore, according to exchange data.

Global oil benchmark Brent crude declined 0.95 per cent to USD 65.40 a barrel.

In the last eight trading days, the BSE benchmark has tanked 2,746.34 points or 3.30 per cent, and the Nifty dropped 812.5 points or 3.19 per cent. PTI SUM SUM BAL BAL

Monetary policy kept unchanged signals scope for easing, restoring investor confidence and prompting market rebound. Reserve Bank of India kept the repurchase rate unchanged and retained a neutral policy stance while raising its fiscal year growth forecast and trimming inflation expectations; it signalled scope for future easing to mitigate trade-related headwinds, balancing upward growth revision with slightly lower near-term projections.