MARKETS extend gains after rate cut

THE EQUITY BENCHMARKS extended gains for the second straight session on Friday, helped by the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points to 5.25% while maintaining a neutral stance.

- FE BUREAU

The Nifty 50 rebounded from an intraday low to close at 26,186.45, up 152.70 points or 0.59%, while the BSE Sensex advanced 447.05 points or 0.52% to 85,712.37. Banks and financial services stocks led the rise. After a roller-coaster activity, the Nifty for the week ended 0.08% lower, while the Sensex was flat, down by 5 points.

“The 25bps repo rate cut and liquidity infusion directly influence market confidence by addressing growth, liquidity, and INR stability concerns, which are key for investor outlook,” said Pratik Gupta, CEO & Co-Head, Kotak Institutional Equities. Ashish Gupta, CIO, Axis Mutual Fund, added, “The RBI’s move to provide additional liquidity and upgrade GDP forecasts is a positive signal, especially for financial sector stocks.”