RBI's unexpected rate cut of 25 bps boosted Indian markets, especially rate-sensitive sectors.
Summary
The Indian stock market closed higher on Friday, boosted by gains in financial and auto stocks following the Reserve Bank of India's (RBI) unexpected 25 basis points (bps) rate cut. This move, along with softer inflation forecasts, created a positive environment for market growth, particularly benefiting rate-sensitive sectors.
Key Points
- RBI announced an unexpected 25 bps rate cut.
- The rate cut was a key driver for market gains.
- Rate-sensitive sectors like autos, real estate, and NBFCs benefited.
- The market experienced a 'risk-on' mood due to the rate cut and inflation forecasts.
Full Article
Indian markets ended higher on Friday as the Sensex and Nifty rebounded, driven by gains in financial and auto stocks after the RBI delivered an unexpected 25 bps rate cut. The surprise move, paired with softer inflation forecasts and supportive liquidity, fuelled a risk-on mood. Analysts said rate-sensitive sectors, autos, real estate and NBFCs, led the rally as borrowing costs eased.