Markets End Week on a High as RBI Rate Cuts Spark Broad-Based Rally
By Andalib Akhter
Indian stock markets ended the week with a strong upward momentum, driven by the Reserve Bank of India’s (RBI) aggressive monetary policy easing. In a bold move to stimulate economic growth, the RBI slashed the repo rate by 50 basis points to 5.50% and reduced the Cash Reserve Ratio (CRR) by a full 100 basis points. This unexpected monetary stimulus sent a wave of optimism across Dalal Street, triggering a rally across key sectors.
The benchmark 30-share BSE Sensex surged 747 points, or 0.92%, to settle at 82,189, while the broader NSE Nifty-50 index jumped 252 points, or 1.02%, to close at the psychologically important 25,000 mark, ending the day at 25,003.
Broader Markets Ride the Wave
The positive sentiment extended beyond the frontline indices. The BSE MidCap index advanced by 0.91%, while the SmallCap index gained 0.43%, reflecting wider market participation in the rally.
Sensex Movers: Banks, Autos, and Finance Stocks Shine
Of the 30 stocks in the Sensex, 28 ended in the green. Bajaj Finance led the charge with a remarkable 5.01% gain, followed by Axis Bank (up 3.11%) and Maruti Suzuki (up 2.64%), as investors cheered the prospects of lower borrowing costs and a boost to consumption.
The only laggards on the index were Sun Pharma, down 0.10%, and Bharti Airtel, which dipped 0.39%.
Sectoral Snapshot: Realty Leads the Surge
Among the BSE’s 21 sectoral indices, 19 ended in the green. The Realty index was the standout performer, soaring 4.74% amid expectations of improved home affordability and increased demand. The Finance sector rose 1.79%, and Metals climbed 1.56% on hopes of stronger infrastructure and industrial activity.
On the downside, the Capital Goods index slipped 0.3%, and Industrials edged down 0.08%, making them the only sectors to finish in negative territory.
Market Breadth and Technical Indicators
The overall market breadth remained positive. On the BSE, 2,278 stocks advanced, while 1,744 declined and 134 remained unchanged. At the NSE, 95 stocks touched their 52-week highs, a strong technical indicator of bullish sentiment, while only 18 registered 52-week lows.
