Sensex climbs 300 points: RBI action, removal of capital gains tax on G-secs for FIIs among factors behind rise | Stock Market News

Sensex Climbs 300 Points: RBI Action, Removal of Capital Gains Tax on G-secs for FIIs Among Factors Behind Rise

The Indian stock market witnessed a significant surge on June 5, 2026, with the Sensex climbing over 300 points. This upward trend can be attributed to several key factors, including the Reserve Bank of India's (RBI) decision to hold interest rates and the removal of capital gains tax on government securities (G-secs) for foreign institutional investors (FIIs).

The RBI's decision to maintain the status quo on interest rates has been seen as a positive move by investors, as it indicates the central bank's confidence in the country's economic growth. The removal of capital gains tax on G-secs for FIIs is also expected to attract more foreign investment into the country, thereby boosting the stock market.

Other factors contributing to the rise in the Sensex include the strong performance of banking stocks, with the Nifty Bank index reaching its highest level of the day. The overall sentiment in the market remains bullish, with investors expecting the economy to continue growing at a steady pace.

Key Factors Behind the Rise

• RBI's decision to hold interest rates: The RBI's decision to maintain the status quo on interest rates has been seen as a positive move by investors, as it indicates the central bank's confidence in the country's economic growth.
• Removal of capital gains tax on G-secs for FIIs: The removal of capital gains tax on G-secs for FIIs is expected to attract more foreign investment into the country, thereby boosting the stock market.
• Strong performance of banking stocks: The Nifty Bank index reached its highest level of the day, contributing to the overall rise in the Sensex.

The rise in the Sensex is a positive indicator of the Indian economy's growth prospects. As the country continues to attract foreign investment and maintain a stable economic environment, the stock market is expected to remain bullish in the coming days.