Investor Optimism Soars with RBI's Rate Cut Boosts Sensex and Nifty

Sensex and Nifty indices saw a significant rise as the Reserve Bank of India cut the repo rate by 25 basis points to 5.25%, countering US tariff pressures. The monetary policy's move aims to stabilize the economy, despite the rupee's decline, prompting gains in rate-sensitive stocks.

The Sensex and Nifty indices rallied significantly on Friday, buoyed by the Reserve Bank of India's decision to cut the repo rate by 25 basis points, marking the first reduction in six months. This move, aimed at bolstering liquidity, provided a much-needed boost amidst high US tariffs.

The 30-share BSE Sensex rose by 447.05 points, ending at 85,712.37, while the NSE Nifty surged by 152.70 points to reach 26,186.45. Investors reacted positively to the central bank's measures, particularly for rate-sensitive sectors like banking, auto, and realty, which ended the day higher.

Despite concerns around the falling rupee, RBI revised its GDP growth projection upwards to 7.3%, while lowering inflation forecasts. Among Sensex constituents, major winners included State Bank of India and Bajaj Finserv, while Hindustan Unilever and Tata Motors saw declines. Globally, Asian and European markets showed strong performances, while US markets remained flat.