{"id":18616,"date":"2025-12-05T13:04:05","date_gmt":"2025-12-05T07:34:05","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=18616"},"modified":"2025-12-05T13:04:05","modified_gmt":"2025-12-05T07:34:05","slug":"sensex-nifty-rbi-rate-cut-market-surge","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/sensex-nifty-rbi-rate-cut-market-surge\/","title":{"rendered":"Rate Cut Meets a Falling Rupee: Sensex Gains 500 Pts, Nifty Near 26,200 as RBI\u2019s 25 bps Cut Lifts Markets"},"content":{"rendered":"

The domestic equity market staged a sharp recovery on Friday as the Sensex<\/a> surged over 500 points and the Nifty<\/a> moved close to the 26,200 mark, reversing early volatility that had been triggered by mixed global cues and ongoing foreign fund outflows. A decisive shift in sentiment came after the Reserve Bank of India (RBI) announced a 25-basis-point policy rate cut, a move that investors widely interpreted as supportive for economic activity and equity markets.<\/p>\n

The trading session began on a cautious note, reflecting concerns around the weakening rupee, external uncertainties, and uneven signals from global peers. However, sentiment improved notably as the central bank\u2019s growth-supportive action lifted expectations of stronger domestic demand, lower borrowing costs, and improving earnings momentum.<\/p>\n

By 12:40 p.m., the benchmark Sensex was up 501.35 points or 0.59 percent at 85,766.67, while the Nifty climbed 158.55 points or 0.61 percent to 26,192.30. Rate-sensitive sectors led the rebound, supported by easing crude prices, firm Asian markets, and a decline in market volatility.<\/p>\n

RBI\u2019s 25-bps Rate Cut Turns the Tide<\/h2>\n

The top driving force behind Friday\u2019s market rally was the RBI Monetary Policy Committee\u2019s unanimous decision to reduce the policy rate by 25 basis points, bringing it down to 5.25 percent. A rate cut directly reduces borrowing costs for corporates and consumers, bolstering credit demand, liquidity, and economic activity \u2014 all of which tend to lift overall market sentiment.<\/p>\n

Rahul Singh, Chief Investment Officer of Equities at Tata Asset Management, told Reuters that an improving earnings outlook is now being further supported by the RBI\u2019s policy easing. He added that ahead of a likely U.S. rate cut next week, there is \u201cvaluation comfort for the Nifty, which is now trading at nearly 21x forward earnings.\u201d<\/p>\n

The strengthening outlook for credit growth, consumption, and margin improvements across rate-sensitive industries contributed meaningfully to Friday\u2019s rebound.<\/p>\n

\u00a0Also Read:<\/strong>\u00a0RBI Cuts Repo Rate to 5.25%; Announces \u20b91 Lakh Crore OMO & $5 Billion USD\/INR Swap<\/a><\/em><\/p>\n

Rate-Sensitive Stocks Gain Momentum<\/h2>\n

Following the policy announcement, buying interest surged in financial, banking, auto, and real estate stocks \u2014 categories that benefit most from the lower interest-rate environment.<\/p>\n