RBI's Rate Cut Fuels Sensex and Nifty Rally

The Sensex and Nifty saw a significant rally as the Reserve Bank of India cut key interest rates by 25 basis points, supported by a revised inflation forecast and GDP growth projection. The move encouraged rate-sensitive sectors, boosting stock markets amid high US tariffs.

In a move that surprised many, the Reserve Bank of India slashed its key interest rate by 25 basis points, marking the first cut in six months. This decision, coupled with measures to enhance liquidity, spurred a rally in the Indian stock markets.

The Sensex surged 447.05 points, closing at 85,712.37, while the Nifty climbed 152.70 points to finish at 26,186.45. This bullish sentiment was driven by lower inflation forecasts and improved GDP growth projections.

Market experts observed a risk-on sentiment, with rate-sensitive sectors like autos and real estate witnessing substantial gains. Meanwhile, foreign investors sold equities, whereas domestic investors capitalized on the opportunity to buy stocks.

(With inputs from agencies.)