Markets gain ground as RBI cuts repo rate by 25 bps

Interest rate sensitive stocks gain ground post decision

The markets saw a knee-jerk reaction to the RBI's decision to cut repo rate by 25 basis points to 6.25%. Marginal standing facility (MSF) rate and the Bank Rate adjusted to 6.75 per cent. Reverse repo rate under the LAF stands adjusted to 5.75%.

The benchmark S&P BSE Sensex was trading at 28,342 level, up by 100 points or 0.35%. Nifty50 gained 25 points or 0.27%, hovering around 8,762 points. The broader markets have shown similar trend, with S&P BSE Midcap and Smallcap indices gaining 0.5%.

GAIL, ONGC and Tata Steel were the top gainers, posting gains between 1.5%-4.5%. On the other hand, Coal India, Larsen and Toubro and Mahindra and Mahindra were among the top losers, slipping between 1%-3% .

Interest rate sensitive sectors reacted well to the RBI's decision. NIFTY Bank and NIFTY Realty showed a marginal positive bias after trading weak for most part of the day, edging up 0.3% post the RBI announcement. The NIFTY Auto index, however, was down by 0.02%.