This is the fourth rate cut by the central bank and has increased to 125 bps. Earlier, RBI cut the rate by 100 bps in 3 MPC meetings – 25 bps each in February and April and 50 bps in June.
Benchmark equity indices surged on Friday after the Reserve Bank of India (RBI) announced a repo rate cut of 25 basis points in a bid to further bolster economic growth. After opening in the red, the 30-share BSE Sensex bounced back and advanced 456.29 points to 85,721.61. The 50-share NSE Nifty also climbed 145.65 points to 26,179.40. Announcing the fifth bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to cut the short-term lending rate, or repo rate, by 25 basis points to 5.25 per cent, with a neutral stance.
This is the fourth rate cut by the central bank and has increased to 125 bps. Earlier, RBI cut the rate by 100 bps in 3 MPC meetings – 25 bps each in February and April and 50 bps in June.
“The RBI delivered the widely anticipated 25 bps repo rate cut to 5.25 per cent, reinforcing India’s current ‘Goldilocks’ phase of strong growth and benign inflation. The MPC’s decision to retain a ‘Neutral’ stance is strategic—it provides immediate support to domestic credit conditions while preserving flexibility amid an uncertain global backdrop. This approach helps sustain economic momentum today, yet keeps the central bank well-positioned to respond swiftly to any emerging risks,” said Ajit Mishra, SVP Research, Religare Broking.
Expert believe that the projection of 7.3 per cent GDP growth for FY26 is optimistic for the market.
At the time of writing the report, Bajaj Finserv, Bajaj Finance, HCL Tech, Infosys, and Tata Consultancy Services were among the major gainers from the Sensex 30 pack. However, Hindustan Unilever, Axis Bank, Sun Pharma and Tata Steel were among the laggards.
Earlier on Thursday, the Sensex jumped 158.51 points or 0.19 per cent to end the session at 85,265.32. The Nifty climbed 47.75 points or 0.18 per cent to 26,033.75.
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