Sensex, Nifty 50 Surge Over 1% on RBI’s Double Boost, Investors Earn ₹3.6 Lakh Crore

RBI’s Double Bonanza Fuels Market Rally

In a surprising move, the Reserve Bank of India (RBI) announced a 50 basis point cut in the repo rate and a 100-basis point cut in the Cash Reserve Ratio (CRR), injecting liquidity into the economy and boosting expectations of improved credit demand and domestic growth. This double bonanza triggered a stellar rally in Indian stocks, with the Nifty 50 and Sensex ending over 1% higher on Friday.

Market Performance Highlights

The Nifty 50 closed with a gain of 252 points, or 1.02%, at 25,003, while the Sensex jumped 443 points, or 1%, to close at 82,188. This surge turned the Nifty 50’s weekly return to positive at 1.02% and the Sensex’s to 0.91%. The market capitalization of all BSE-listed firms rose to ₹451.1 lakh crore from ₹447.5 lakh crore in the previous session, making investors richer by about ₹3.6 lakh crore in a single session.

Sectoral Performance and Key Contributors

The Nifty Realty index emerged as the top sectoral performer, gaining over 4.68%, as investor optimism grew that a 50-basis point cut in the repo rate could fuel demand for residential homes. Banking stocks, including HDFC Bank, Bajaj Finance, and Axis Bank, were among the top contributors to the Nifty 50’s gains. HDFC Bank’s healthy 1.5% gain contributed 48 points to the Nifty 50’s rally of 252 points.

Mid-cap and Small-cap Stocks Shine

• The Nifty Midcap100 index rose 1.21%, its biggest gain since May 12.
• The Nifty Smallcap100 index rallied by 0.80%.

Stocks in Focus

45 Nifty 50 constituents closed in the green, with financial stocks like Shriram Finance and Bajaj Finance emerging as top gainers, rallying 5.7% and 5%, respectively. Private banking counters such as Axis Bank, IndusInd Bank, and Kotak Mahindra Bank zoomed over 1.6%, while auto stocks like Eicher Motors, Hero MotoCorp, and Mahindra & Mahindra jumped between 1.6% and 3%.

Trading Activity and Circuit Limits

• Rama Steel Tubes emerged as the top volume gainer, with 237 million shares traded.
• 95 stocks hit their respective upper circuit limits, ranging from 2% to 20%.

Conclusion and Future Outlook

The RBI’s unexpected rate cut and liquidity infusion have provided a significant boost to the Indian stock market, with investors earning ₹3.6 lakh crore in a single session. As the market continues to respond to these policy changes, investors will closely monitor future economic indicators and corporate earnings reports for further cues.