MUMBAI : Indian stock markets surged on Friday morning after the Reserve Bank of India (RBI) reduced its policy interest rate by 25 basis points, signalling its commitment to support economic growth.
Following initial volatility, the benchmark 30-share BSE Sensex rebounded strongly, gaining 318.71 points to reach 85,584.03. The 50-share NSE Nifty also saw a robust increase of 95 points, climbing to 26,128.75. The rate cut, which lowered the RBI’s policy interest rate to 5.25 per cent, is aimed at boosting economic activity. This move comes despite ongoing concerns over the rupee’s depreciation and the broader challenges facing the economy. The RBI’s decision reflects its determination to maintain momentum in the economy, which posted a strong 8.2 per cent growth in the second quarter of the current financial year, the highest in six quarters.
Economists view this rate cut as an effort by the central bank to sustain the growth trajectory, even amid external pressures such as inflation and currency volatility. “The RBI is clearly focused on fostering an environment conducive to continued economic expansion,” said a financial analyst. Market sentiment was positively influenced by the RBI’s proactive stance, as investors welcomed the decision, confident that it would help stimulate both domestic demand and investment. The rally in stock indices highlights growing optimism among investors regarding the country’s economic recovery.
With the RBI’s actions seen as a key indicator of future policy direction, all eyes will be on further developments in the coming months.
