Friday morning started with a silence in Dalal Street but by the evening it was a party. The Reserve Bank of India (RBI) took the investors by surprise and reduced the repo rate by 50 basis points, a step to accelerate economic growth. This surprise move ignited the markets and Sensex and Nifty shot up.
The Sensex soared by 746.95 points (0.91%), finishing at 82,188.99, while the Nifty climbed 252.15 points (1.02%), wrapping up the session on a strong footing at 25,003.05. It was somehow evident clear-cut indication that investors embraced the rate cut with arms wide open.
Market Opens Slow, Ends with a Bang
The day did not begin this early. The markets exercised caution in anticipation of the RBI policy announcement. Sensex opened at 81,464.59 but dropped to 81,360.32 within minutes. Nifty also showed little movement at the beginning. But the tone changed totally after the announcement.
By midday, the Sensex had climbed over 800 points, reaching 82,253.46. Nifty also showed the craze by rising 264 points to 24,743.60. The mood shifted from nervous to euphoric in hours.
Top Gainers Drive the Rush
Out of the 30 Sensex stocks, 28 wrapped up in positive territory. Bajaj Finance led the pack, gaining by almost 5%. Axis Bank was next with a gain of 3%, and Maruti wasn’t far behind, gaining by 2.64%. These figures pointed towards extremely high investor optimism easily.
Power Grid, Reliance Industries, UltraTech Cement, and ITC also saw huge buying interest. Eternal (formerly Zomato) rose by 4.5%, and it was a story in the mid-cap universe.
While Most Soared, a Few Slipped
While most stocks followed the RBI beat, not everyone was in the party. Sun Pharma and Bharti Airtel lost insignificant amounts by the end of the session. ICICI Bank, Tata Motors, and Titan also showed early weakness in the session but the overall mood trumped the dips.
Investor Sentiment Bounces Strong
Just a day earlier, the market had seen some turbulence. The Sensex fluctuated by almost 900 points during the day but settled with pared gains amid profit-taking. Friday’s sharp rally, however, shows that investors are hopeful once again.
The RBI’s move could lead to cheaper loans and increased liquidity key ingredients for economic revival.
(Disclaimer: Stock market investments are subject to risk. Always seek expert advice before investing.)