Summary of this article
The RBI's Monetary Policy Committee unanimously approved a 25 basis point rate cut, setting the new terminal rate at 5.25%.
This policy decision immediately triggered a market surge, with the Nifty Realty index leading the rally (up 1.4%).
Rate-sensitive sectors like Nifty Bank, Nifty Auto, and Nifty Financial Services also saw significant upward movement.
The Reserve Bank of India (RBI) has announced a cut in lending rates on December 5. The policy decision has led to upward movement in several indices such as the Nifty Auto, Nifty Bank, Nifty Financial Services and Nifty Realty trade in the green.
RBI’s Rate Cut Cheers Nifty Bank and Other Indices
The RBI’s Monetary Policy Committee has unanimously approved a rate cut of 25 basis points, reducing the terminal rate to 5.25 per cent. Following the development the Nifty 50 gained 0.3 per cent to an early high of 26,113.85 and the Sensex traded higher by 0.3 per cent to reach an early high of 85522.97 levels.
Among the rate-sensitive sectors, the Nifty Realty index gained the most in early trade, surging 1.4 per cent to an early high of 903.05 levels. The Nifty Bank gained 0.65 per cent to an intraday high of 59,679.35 levels. Other rate-sensitive sectoral indices such as the Nifty Auto index and the Nifty Financial Services index traded higher by 0.42 per cent and 0.69 per cent following the announcement.
(This is a developing story)
