Sensex surges as RBI cuts repo rate again
The stock market got a boost on Friday after the Reserve Bank of India cut its key lending rate by 0.25%, bringing the repo rate down to 5.25%.
Sensex climbed 338 points to close at 85,603, and Nifty rose by 109 points to finish at 26,143.
Why does this matter?
Lower rates make borrowing cheaper, which is good news for anyone looking at loans or EMIs—think cars or homes.
Sectors like real estate, autos, banks, financial services, and IT led the rally as investors cheered the move.
What's behind the RBI's decision?
This is the fourth rate cut in 2025 as inflation stays low and growth looks strong.
The RBI now expects India's economy to grow faster in FY26 (7.3% instead of 6.8%) and sees FY26 inflation cooling off to just 2%.
The goal appears to be to keep momentum going without letting prices spike.