Sensex jumps over 700 points to break 8-day losing streak. What was the good news in RBI policy?

Dalal Street celebrated the RBI's expected 'dovish pause' and Governor Malhotra's pro-market initiatives, ending an 8-day losing streak. Sensex surged over 600 points as RBI allowed banks to fund M&A, liberalized loans against shares, and reduced risk weights for infrastructure financing. These measures, coupled with optimistic GDP and inflation forecasts, significantly boosted market sentiment, especially for banking and infrastructure stocks.