Mumbai— Indian equity markets soared on Friday as investors cheered the Reserve Bank of India’s (RBI) aggressive monetary easing. The central bank slashed the repo rate by 50 basis points to 5.50% and cut the cash reserve ratio (CRR) by 100 basis points in four tranches, triggering a strong rally across sectors.
The Sensex surged 746.95 points, or 0.92%, to close at 82,188.99, while the Nifty jumped 252.15 points, or 1.02%, to end the session at 25,003.05—closing above the 25,000 mark for the first time.
Banking stocks led the charge. The Nifty Bank index gained 817.55 points, or 1.47%, to close at 56,578.40 after hitting an intraday high of 56,695, its highest level on record.
Gains were broad-based, with midcaps and smallcaps also advancing. The Nifty Midcap 100 rose 707.30 points, or 1.21%, to 59,010.30, while the Nifty Smallcap 100 added 149.85 points, or 0.81%, to settle at 18,582.45.
“The Nifty has seen a sharp upswing on the back of the RBI’s bazooka policy move,” said Rupak De of LKP Securities. “Closing above the 25,000 mark for the first time in several sessions reflects renewed optimism. Historically, such rallies followed by consolidation often lead to a breakout, and we expect Nifty to continue its upward trend.”
Analysts say the rate cuts, combined with enhanced liquidity through the CRR reduction, signal the RBI’s strong intent to stimulate economic growth, bolster investment, and boost consumption.
Sectors sensitive to interest rates—such as banking, real estate, automobiles, and consumer durables—were among the top gainers. Experts believe these sectors will continue to benefit from the lower interest rate environment in the coming weeks.
“Rate-sensitive sectors, along with thematic plays like railways, are likely to remain in focus,” said Ajit Mishra of Religare Broking Ltd. “We continue to advocate a ‘buy on dips’ approach, with a focus on selective stock picking as the market builds on its current momentum.” (Source: IANS)
