Mumbai Mumbai: Indian stock markets closed in the red on Friday after the Reserve Bank of India (RBI) announced a 25 basis points (bps) cut in the repo rate, bringing it to 6.25 per cent. This was the first rate cut in five years, signalling an effort to boost economic growth amid global uncertainties. The BSE Sensex closed 197.97 points lower at 77,860.19, while the NSE Nifty closed 43.40 points lower at 23,559.95. Out of the Nifty 50 stocks, 28 rose while 23 declined. Top gainers in the Nifty index included Tata Steel, ITC Hotels, Bharti Airtel, JSW Steel and Trent, while ITC, SBI, Britannia, Adani Ports and TCS were the biggest losers. Commenting on the market reaction, SEBI registered research analyst and co-founder of Stock Market Today VLA Ambala said, “On Friday, the RBI’s Monetary Policy Committee reduced the repo rate for the first time in more than five years to 6.25 per cent. This measure signals a strategic move to stimulate economic growth amid a challenging global backdrop.” He added, “This decision is expected to benefit several sectors, especially real estate, by increasing liquidity in the market, which may allow developers to accelerate ongoing projects and launch new ones. In addition, lower borrowing costs on new and existing floating-rate home loans are likely to boost housing sales.” Meanwhile, the RBI retained India’s CPI inflation forecast for FY25 at 4.8 per cent and projected inflation for FY26 at 4.2 per cent. Retail inflation eased to a four-month low of 5.22 per cent in December 2024, driven mainly by a drop in food prices. The RBI governor also highlighted that the focus on agriculture in the Union Budget for FY26 will play a key role in keeping inflation under control.
RBI’s interest rate cut does not enthuse the market
