RBI's rate cut boosts benchmark indices

Stock market responded optimistically to the RBI's aggressive growth push policy. The rate cut and liquidity boost is expected to facilitate swift transmission of lower rates, and reinforcing RBI's strong commitment towards economic growth

- PRESS TRUST OF INDIA

The 50-share NSE Nifty reclaimed the 25,000-level and climbed 252.15 points, or 1.02 per cent, to settle at 25,003.05. The 30-share BSE Sensex ended the day higher by 746.95 points or 0.92 per cent to settle at 82,188.99.

With the repo rate announcement, Nifty Bank index hit its all-time high Friday, rising 1.47 per cent, after the Reserve Bank of India (RBI) decided to cut cash reserve ratio (CRR) by a huge 1 per cent, unlocking ₹2.5 lakh crore liquidity to the banking system for lending to productive sectors of the economy.

With the reduction in four equal tranches ending November 29, 2025, the CRR would come down to 3 per cent. This means that the commercial banks would have to maintain a lower level of 3 per cent in liquid cash form with the RBI, allowing them to have higher funds for lending.