In a significant boost to investor sentiment, the Reserve Bank of India’s (RBI) latest monetary policy announcement triggered a sharp rally in the Indian stock market, pushing both the Nifty and the NSE indices to hit their upper circuit limits.
The central bank’s decision to maintain a dovish stance, combined with a surprise cut in the repo rate by 25 basis points, was met with enthusiastic response from market participants. The RBI cited easing inflation, stable macroeconomic indicators, and the need to support continued economic growth as key reasons behind the move.
The Nifty 50 soared past critical resistance levels and hit the upper circuit within hours of market opening. Similarly, the broader NSE index witnessed a massive surge in buying activity, halting trading temporarily due to the breach of circuit limits.
Banking, real estate, and auto sectors led the rally, with shares of major players like HDFC Bank, ICICI Bank, and Tata Motors recording double-digit gains.
Market analysts noted that the RBI’s accommodative approach has restored confidence among domestic and foreign investors alike. “This policy was a much-needed push, especially with global uncertainties weighing on sentiment. We expect continued momentum in the coming sessions,” said Rajiv Mehra, a senior analyst at Axis Securities.
With optimism prevailing and liquidity on the rise, the markets are expected to remain buoyant in the short term. However, experts also urge investors to remain cautious and monitor global cues closely.
