MUMBAI (Reuters) - India's stock markets ended higher on Tuesday, reversing losses of more than 1 percent earlier in the session, after the Reserve Bank of India (RBI) surprised the street with a bigger-than-expected rate cut.
The central bank cut its key repo rate by a larger-than-expected 50 basis points to 6.75 percent on Tuesday, with inflation running at record lows and the economy in danger of slowing down.
Only one out of 51 economists and analysts polled by Reuters last week expected a 50-basis-point cut while 45 expected the RBI to cut the repo rate by 25 basis points.
The benchmark Sensex ended 0.63 percent higher, after recovering from a 1.29 percent fall, but was up as much as 1.71 percent during the day.
The broader Nifty gained 0.61 percent at close. It rose as much as 1.68 percent after falling as low as 1.34 percent.
(Reporting by Karen Rebelo in Mumbai; Editing by Sunil Nair)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app