Sensex soars over 700 points, Nifty reclaims 25K-mark on RBI’s rate cut

Mumbai: Benchmark indices Sensex and Nifty surged nearly 1 per cent on Friday, driven by a rally in rate-sensitive sectors following the RBIs jumbo rate cut of 50 basis points.

Market analysts said in light of benign inflation forecasts, RBI has taken steps to boost growth. A 50 bps repo rate cut supported by phased 100 basis points CRR cut will boost growth and lower the borrowing costs.

After a muted start, benchmark sensitive index Sensex and Nifty soon recovered all the early lost ground fuelled by the RBI monetary policy decision and gained over 1 per cent.

The 30-share BSE Sensex ended the day higher by 746.95 points, or 0.92 per cent, to settle at 82,188.99. During the day, it surged 857.85 points, or 1.05 per cent, to 82,299.89.

The 50-share NSE Nifty reclaimed the 25,000-level and climbed 252.15 points, or 1.02 per cent, to settle at 25,003.05.

Among sectoral indices, realty jumped 4.74 per cent, financial services (1.79 per cent), metal (1.56 per cent), auto (1.50 per cent), consumer discretionary (1.38 per cent), consumer durables (1.30 per cent) and bankex (1.25 per cent).

Industrials and capital goods were the only laggards.

The BSE midcap gauge jumped 0.91 per cent and smallcap index climbed 0.43 per cent.

As many as 2,278 stocks advanced while 1,744 declined and 134 remained unchanged on the BSE.

The rupee pared initial losses and appreciated 11 paise to close at 85.68 against the US dollar on Friday, after the RBI cut repo rate by a higher-than-expected 50 basis points to prop up growth.