Sensex and Nifty Surge: A Bold RBI Move Ignites Economic Optimism

The Sensex rose by 746.95 points and the Nifty reclaimed the 25,000-level as the RBI cut interest rates by a surprising 50 basis points. This move, along with a cash reserve ratio cut, provided significant liquidity to the banking system, boosting investor confidence and driving the market rally.

Benchmark equity indices experienced a significant surge on Friday. The BSE Sensex jumped 746.95 points while the NSE Nifty reclaimed its 25,000 mark, reacting positively to the Reserve Bank of India's unexpected decision to lower interest rates by 50 basis points, its third consecutive cut, and to reduce the banks' cash reserve ratio.

Led by Governor Sanjay Malhotra, the RBI's monetary policy committee enacted a growth-focused strategy by adjusting the repo rate to 5.5 per cent and cash reserve ratios to 3 per cent, injecting surplus liquidity into the economy amidst geopolitical and tariff challenges.

The Indian stock market's optimism was evident as banking, real estate, and automobile sectors, among others, propelled the rally. Key stocks such as Bajaj Finance and Axis Bank saw notable increases, while a shift to a 'neutral' monetary policy stance suggested a balanced approach to economic growth and inflation management.

(With inputs from agencies.)