Sensex, Nifty rally as RBI cuts key benchmark interest rate for the first time in six months

Mumbai: Stock market benchmark indices Sensex and Nifty rallied on Friday after the RBI cut key benchmark interest rate for the first time in six months and took steps to boost liquidity to support a “goldilocks” economy in the face of high US tariffs.

Rising for the second day in a row, the 30-share BSE Sensex advanced 447.05 points, or 0.52 per cent, to settle at 85,712.37.

The 50-share NSE Nifty climbed 152.70 points, or 0.59 per cent, to 26,186.45.

On the weekly front, the BSE benchmark eked out a marginal gain of 5.7 points, while the Nifty dipped 16.5 points.

From the Sensex firms, State Bank of India, Bajaj Finserv, Bajaj Finance, Maruti, HCL Tech, Larsen & Toubro, Mahindra & Mahindra and Infosys were among the major winners.

However, Hindustan Unilever, Eternal, Tata Motors Passenger Vehicles, and Sun Pharma were among the laggards.

Rate-sensitive stocks -- bank, auto and realty -- ended higher.

The BSE midcap gauge climbed 0.21 per cent, while smallcap index declined 0.67 per cent.

Among sectoral indices, BSE Focused IT jumped 0.90 per cent, bankex (0.86 per cent), financial services (0.84 per cent), metal (0.74 per cent) and teck (0.73 per cent).

However, BSE Services, capital goods, industrials and FMCG were the laggards.

The rupee on Friday gave up its initial gains and settled for the day lower by 6 paise at 89.95 against the US dollar, after the Reserve Bank cut the key benchmark interest rate for the first time in six months.