The Nifty Bank index hit its all-time high on Friday, rising 1.47%, after the RBI decided to cut cash reserve ratio (CRR) by a huge 1%

PTI New Delhi

Indian markets reacted optimistically to RBI’s surprise ‘growth push’ monetary policy on Friday. The 30-share BSE Sensex closed the day higher by 746.95 points to settle at 82,188.99. The 50-share NSE Nifty reclaimed the 25,000-level and climbed 252.15 points to close at 25,003.05.

Rate-sensitive realty, bank and auto stocks were in huge demand. The BSE realty index jumped 4.74% to 8,069.29. Realty stocks, Godrej Properties surged 6.75%, DLF jumped 6.61%, Oberoi Realty climbed 6.41%, Prestige Estates Projects rallied 5.03%, Sobha (4.72%), Macrotech Developers (3.68%), Signature Global (India) (3.02%), The Phoenix Mills (2.31%), Anant Raj (1.20%) and Brigade Enterprises (1.19%).

The BSE bank index jumped 1.25% to 63,556.36. Axis Bank gained 3.15%, IndusInd Bank rose 2.50%, Bank of Baroda (1.65%), Kotak Mahindra Bank (1.61%), HDFC Bank (1.42%), SBI (0.84%), Federal Bank (0.39%) and ICICI Bank (0.16%).

“The bumper rate cut, and liquidity boost via the CRR cut, are expected to facilitate swift transmission of lower rates, reinforcing RBI’s strong commitment to fostering economic growth, boosting investment, and stimulating consumption. The reserve bank’s neutral stance moderated expectations for future rate cuts and concerns linger over current tepid demand, as reflected in the unchanged GDP growth forecast for FY26. However, the immediate liquidity expansion and growth-focused policy measures are likely to support the investor confidence amidst the ongoing global uncertainties.