Benchmark indices Sensex and Nifty rallied in Friday morning trade after the 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 soared 591.94 points to 82,033.98 in morning trade, while the 50-share NSE Nifty advanced 205.2 points to 24,956.10. Among sectoral indices, the interest-rate-sensitive realty index rose 2.80%, the auto index gained 1.14%, and the Bankex added 0.98%.
The Reserve Bank of India (RBI) on Friday slashed the repo rate by a higher-than-expected 50 basis points to support economic growth, which has slowed to 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%, offering relief to borrowers of home, auto, and corporate loans.
This marks the lowest repo rate in three years. RBI Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) decided to cut the repo rate by 50 basis points after a thorough assessment of evolving macroeconomic conditions, financial developments, and the overall economic outlook.