The Indian stock market benchmark indices, Sensex and Nifty 50, rallied on Friday after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points in its fifth bi-monthly monetary policy for FY26.
The Sensex jumped 338.39 points, or 0.40%, to 85,603.71, while the Nifty 50 was up 109.05 points, or 0.42%, at 26,142.80. The Bank Nifty index traded 0.55% higher.
Rate-sensitive sectors led the gains, with Nifty Realty, Nifty Auto, Nifty Financial Services, Nifty PSU Banks and the Nifty IT indices trading in the green.
RBI Policy Outcome
The rally in the Indian stock market today came after the RBI’s Monetary Policy Committee (MPC), headed by Governor Sanjay Malhotra, unanimously voted to reduce repo rate by 25 bps to 5.25%, and decided to continue with a ‘neutral’ stance.
The MPC also raised FY26 GDP growth estimates to 7.3% from 6.8% earlier. It reduced FY26 CPI inflation forecast to 2% from 2.6% earlier.
This year, the RBI lowered the repo rate by a cumulative 125 bps in four meetings, beginning in February. In its October policy, the MPC kept the repo rate unchanged at 5.50% and maintained the policy stance as ‘Neutral’.
