Benchmark indices Sensex and Nifty rallied sharply in Friday morning trade after the Reserve Bank of India (RBI) announced a larger-than-expected 50 basis point cut in the repo rate to boost economic growth.
Recovering early losses, the 30-share BSE Sensex jumped over 700 points to cross 82,100, while the 50-share NSE Nifty surged over 200 points to approach the 25,000 mark. Among sectoral indices, the interest-rate-sensitive realty index rose 2.80%, the auto index gained 1.14%, and the Bankex climbed 0.98%.
The RBI slashed the repo rate by 50 basis points—more than market expectations—to support the slowing economy, which is projected to grow at a four-year low of 6.5% in FY25. With this cut, the key policy rate now stands at a three-year low of 5.5%, bringing relief to home, auto, and corporate loan borrowers.
“This marks the lowest repo rate in three years,” RBI Governor Sanjay Malhotra said. He added that the Monetary Policy Committee (MPC) took the decision after a comprehensive review of the evolving macroeconomic situation, financial developments, and the overall outlook.
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