Sensex jumps 600 points as RBI takes pro-growth measures
Sensex shot up over 600 points on Wednesday, jumping to 80,930, after the Reserve Bank of India (RBI) kept its main interest rate unchanged and rolled out new credit-boosting steps.
Financial stocks led the gains—Nifty Bank climbed 1%, and infrastructure lenders soared more than 5%.
Loan-against-shares limit raised to ₹1 crore
The RBI's moves make it easier to get loans and invest, which could mean more opportunities for investors and entrepreneurs.
Raising the loan-against-shares limit from ₹20 lakh to ₹1 crore and bumping up IPO financing to ₹25 lakh are set to boost market activity.
Plus, the RBI now expects India's economy to grow faster in FY2025 (6.8% instead of 6.5%) with lower inflation.
RBI focuses on structural reforms instead of quick rate cuts
Instead of quick rate cuts, RBI Governor Sanjay Malhotra said they're focusing on structural reforms expected to have a lasting impact.
By reducing risk weights on NBFC infrastructure loans and letting banks fund more mergers and acquisitions, the RBI aims to cut borrowing costs and keep credit flowing—moves that could help fuel growth across different sectors.