Domestic stock markets closed higher on Friday after the RBI proposed keeping policy interest rates unchanged. The Sensex gained 266 points, while the Nifty 50 gained 51 points.

RBI's decision on repo rate brought cheer to the stock market; Sensex and Nifty closed in the green, learn the details

Indian Stock Market Closing Today: Domestic stock markets closed higher on Friday after the Reserve Bank of India (RBI) announced plans to keep policy interest rates steady and allow lending to real estate investment trusts (REITs). The Sensex gained 266 points, while the Nifty 50 gained 51 points.

The BSE's 30-share benchmark Sensex rose 266.47 points, or 0.32 per cent, to close at 83,580.40 due to buying in the final phase of the trading session. 

The Sensex surged 655.05 points from its day's low of 82,925.35. Meanwhile, the NSE's 50-share benchmark Nifty gained 50.90 points, or 0.20 percent, to close at 25,693.70. The market remained volatile throughout the day. 

There was no change in the repo rate.

The RBI decided to keep the repo rate unchanged at 5.25 percent in its bi-monthly monetary policy review. The central bank's six-member Monetary Policy Committee (MPC) reached this decision unanimously. The RBI also maintained its neutral monetary stance, indicating that a rate change is unlikely for the time being. 

There was a rise and fall in these shares.

Among Sensex companies, ITC was the biggest gainer, rising 5.09 percent. Kotak Mahindra Bank, Hindustan Unilever, Bharti Airtel, Bajaj Finance, Power Grid, and Bajaj Finserv also gained. Meanwhile, Tata Consultancy Services (TCS), Tech Mahindra, Adani Ports, Asian Paints, Eternal, and HCL Tech closed with losses. 

RBI Governor Sanjay Malhotra announced a proposal to allow REITs to lend to boost financing in the real estate sector. However, this approval will be granted subject to certain prudential safeguards for banks. This announcement is expected to provide long-term financial support to the real estate and credit ecosystem.

Condition of other Asian markets

Elsewhere in Asia, South Korea's Kospi, China's Shanghai Composite, and Hong Kong's Hang Seng ended in the red, while Japan's Nikkei closed higher. Most European markets were trading higher in afternoon trade. US markets had closed lower on Thursday.

Vinod Nair, head of research at Geojit Investments Ltd., said, "Domestic stock markets traded subdued for most of the day. However, buying in FMCG and private bank stocks in the latter part of the session helped the indices rise." Nair described the RBI's monetary policy as in line with expectations and said it sent positive signals for growth.