Indian Markets Rally on RBI's Surprise Rate Cut
Benchmark indices Sensex and Nifty rose nearly 1% on Friday, driven by RBI's surprise 50 bps rate cut. The move boosted growth prospects, especially in rate-sensitive sectors such as realty and financials. Analysts anticipate continued market momentum given the supportive monetary policy outlook.
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- India
In a surprise move, India's benchmark indices Sensex and Nifty soared by nearly 1% on Friday, catalyzed by the Reserve Bank of India's significant 50 basis point rate cut. The decision was perceived as a strategic measure to bolster economic growth amidst benign inflation forecasts.
Experts praised the central bank's decision, noting its positive implications for growth and investment. The rate cut, combined with a phased 100 basis points CRR reduction, is expected to lower borrowing costs, potentially driving further market gains.
Realty, financials, and auto sectors led the rally, while market sentiment improved following the Monetary Policy Committee's announcement. Analysts predict that this monetary easing will continue to influence investor confidence, likely propelling indices to new heights.
(With inputs from agencies.)
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