Stock market today: Nifty50 ends above 25,000; BSE Sensex jumps over 700 points; market rallies after RBI cuts rate by 50 bps

Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, rallied strongly in trade on Friday after the RBI cut repo rate by more than expected. The RBI-led MPC slashed repo rate by 50 basis points to 5.5% and also announced a 100 basis points staggered cut in Cash Reserve Ratio (CRR). While Nifty50 crossed the 25,000 mark, BSE Sensex rallied over 700 points.

Nifty50 ended the day at 25,003.05, up 252 points or 1.02%. BSE Sensex closed at 82,188.99, up 747 points or 0.92%.

Vinod Nair, Head of Research, Geojit Investments Limited says, “The Indian stock market responded optimistically to RBI’s surprise and aggressive growth push policy. The tremendous rate cut and liquidity boost via the CRR cut is expected to facilitate swift transmission of lower rates, reinforcing RBI's strong commitment to fostering economic growth, boosting investment, and stimulating consumption. The RBI's neutral stance moderated expectations for future rate cuts and concerns linger over current tepid demand, as reflected in the unchanged GDP growth forecast for FY26. However, the immediate liquidity expansion and growth-focused policy measures are likely to support the investor confidence amidst the ongoing global uncertainties. Rate-sensitive sectors, including banking, real estate, automobiles, and consumer durables are leading the rally."

The RBI’s rate cut comes as a move to stimulate economic growth, which has dipped to a four-year low of 6.5% in FY25. The reduction in the key lending rate is expected to ease borrowing costs for home, auto, and business loans, offering relief to consumers and corporates alike.


Analysts expect markets to consolidate with a positive bias, supported by global cues, macroeconomic data, and ongoing US-India trade discussions.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, "Uncertainty, which has been looming large on the global economic horizon, has spiked with the open spat between President Trump and Elon Musk. This unprecedented clash between two of the world’s most powerful and mercurial personalities will have its consequences on the policies of the US administration. Chinese restrictions on exports of rare earth minerals and magnets, in response to the reciprocal tariffs imposed by US, have already started impacting the EV automobile industry. Important US data like US ISM PMI and jobless claims indicate that the US economy is slowing down. US is likely to end 2025 with a GDP growth of mere 1%."

US equity indices declined on Thursday in volatile trading, with Tesla's downturn overshadowing positive developments in trade discussions between US President Donald Trump and Chinese leader Xi Jinping.

Asian shares traded mostly higher as investors awaited a crucial update on the US job market, which could provide fresh signals on the health of the world’s largest economy.

Gold prices advanced on Friday and were set for weekly gains, as disappointing US economic indicators strengthened demand whilst a weakening dollar provided additional support.

Investors remained focused on upcoming US payroll figures for insights into the Federal Reserve's policy decisions.

FPIs recorded net sales of Rs 208 crore on Thursday, whilst DIIs emerged as net purchasers with Rs 2,382 crore. FIIs' net short position in futures trading increased to Rs 1.06 lakh crore on Thursday from Rs 1.02 lakh crore on Wednesday.

(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
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