RBI Policy Boosts Investor Sentiment, Nifty Ends Above 25,000

Mumbai witnessed a broad-based rally on Friday after the Reserve Bank of India unveiled a double-barrel stimulus—slashing the repo rate by 50 basis points to 5.50 per cent and trimming the cash reserve ratio (CRR) by a cumulative 100 basis points (to be rolled out in four tranches).

Headline Indices Hit Fresh Milestones

• Sensex: Jumped 746.95 points (0.92 %) to close at 82,188.99.
• Nifty 50: Climbed 252.15 points (1.02 %) to finish at 25,003.05, vaulting the psychologically important 25,000 level for the first time.

Banks Lead the Charge

Banking counters spearheaded the advance:

• Nifty Bank: Spiked 817.55 points (1.47 %) to 56,578.40 after setting an intraday record of 56,695.

Broad-Based Participation

• Nifty Midcap 100: Added 707.30 points (1.21 %) to 59,010.30.
• Nifty Smallcap 100: Rose 149.85 points (0.81 %) to 18,582.45.

Analysts See Further Upside

Rupak De, Senior Technical Analyst at LKP Securities, dubbed the RBI’s measures a “bazooka policy move,” noting that a close above 25,000 reflects heightened optimism and sets the stage for a potential breakout from the recent consolidation band.

Ajit Mishra of Religare Broking believes rate-sensitive sectors—banking, real estate, autos, and consumer durables—will remain in focus, alongside thematic plays such as railways. He continues to recommend a “buy-on-dips” approach with selective stock picking.

Macro Tailwinds

Economists say the aggressive rate and CRR cuts should accelerate the transmission of lower borrowing costs, bolster liquidity, and underpin growth by spurring investment and consumption.

As traders digest the RBI’s pro-growth stance, market sentiment is expected to stay buoyant—keeping rate-sensitive names and high-beta themes in the limelight during the sessions ahead.