New Delhi, June 6 (ANI): Indian stock indices experienced a significant surge on Friday following an unexpected policy rate cut by the Reserve Bank of India (RBI). This positive market reaction reflects heightened optimism among investors.
The BSE Sensex closed at 82,188.99, up 746.95 points (0.92%), and the Nifty 50 rose 252.15 points (1.02%). The RBI's decision to cut the repo rate by 50 basis points to 5.5% exceeded expectations, signaling an aggressive approach to stimulate economic growth.
Nifty Bank hit a new high, closing at 56,578.40, up over 817 points. Analysts noted the rate cut's potential impact on bank margins, but also highlighted the expected boost to credit growth. Sectors like Realty rose over 4%, while Media was the only sector down, by one percent.
The rate cut is expected to strengthen homebuyer sentiment and ease liquidity in the market. The proactive approach signals the central bank's commitment to boost economic momentum and investor confidence. All other sectoral indices ended higher with metal, auto, and consumer durables jumping over one percent each.