The RBI Rate Cut: Sparking a Financial Rally!
Interest-rate-sensitive stocks surged as the RBI announced a substantial rate cut of 50 basis points, boosting the realty sector by nearly 5%. The cut, along with a reduced cash reserve ratio, aims to stimulate the economy by increasing liquidity and reducing loan costs.
- Country:
- India
In an unexpected move, the Reserve Bank of India (RBI) slashed interest rates by 50 basis points, prompting a ripple effect in the stock market on Friday. As a result, interest-rate-sensitive stocks witnessed a significant upswing, with the realty index experiencing a nearly 5% increase.
The RBI's decision, which also includes a reduction in the cash reserve ratio by 100 basis points to 3%, is intended to make loans more affordable, fueling hope for economic growth. This move has added an impressive Rs 2.5 lakh crore to the already substantial surplus liquidity in the banking system.
Major jumps were seen across realty, banking, and auto sectors, with indices reflecting strong investor confidence. Realty stocks like Godrej Properties, DLF, and Oberoi Realty saw remarkable gains, while the BSE Sensex concluded the day high by 746.95 points at 82,188.99, underlining investor optimism fueled by the RBI's aggressive monetary strategies.
(With inputs from agencies.)
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