A Timely Boost for the Bulls
The repo rate cut and CRR reduction, intended to boost liquidity, lifted the markets, with the real estate sector emerging as the standout performer
Over the past fortnight, Indian benchmark indices traded within a tight range, with investors awaiting a decisive trigger to steer the market in either direction. The anticipation finally gave way in the last trading session, as the Reserve Bank of India’s Monetary Policy Committee (MPC) delivered a widely expected yet impactful announcement. The MPC cut the repo rate by 50 basis points, bringing it down to 5.5 per cent. Interestingly, the policy stance was revised from ‘accommodative’ to ‘neutral’, indicating a shift in the RBI’s approach. While markets welcomed the move, the initial reaction was measured.
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