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RBI Cuts Repo to 5.25% as Sensex, Nifty Advance

Focus turns to the US Fed decision expected to influence currency moves.

Overview

  • The Reserve Bank of India lowered the policy repo rate by 25 basis points to 5.25% and announced liquidity support, including plans to inject about Rs 1.45 lakh crore through bond purchases and dollar–rupee swaps.
  • The Sensex rose 447 points to 85,712.37 and the Nifty gained 152.70 points to 26,186.45 on Friday, capping a volatile but slightly positive finish to the week.
  • Rate-sensitive counters led the move, with banks, autos and real estate stocks outperforming, while the BSE Midcap index edged up 0.21% and the Smallcap index slipped 0.67%.
  • The rupee weakened to roughly 89.95–90 against the US dollar and foreign investors were net sellers of about Rs 10,400 crore, tempering the policy-driven rally.
  • Stock-specific developments drew attention, including IndiGo canceling 400-plus flights as the Centre pressed carriers to follow fare caps and Suzlon reporting a Gujarat tax order trimming a legacy penalty with a refund indicated.