Here RBI changed the repo rate, on the other hand the stock market jumped at the speed of rocket; See today’s highlights

Share Market Highlights: The effect of cut in interest rates was visible in the Indian market in Friday’s session. At the end of trading, Sensex was at 85,712.37, up 447.05 points or 0.52 per cent, and Nifty was at 26,186.45, up 152.70 points or 0.59 per cent. The market rise was led by public sector banking stocks. Nifty PSU Bank closed with a gain of 1.51 percent. With this, Nifty IT closed with a rise of 0.90 percent, Nifty Auto 0.74 percent, Nifty Financial Service 0.98 percent, Nifty Metal 0.67 percent and Nifty Realty closed with a rise of 0.34 percent.

On the other hand, Nifty Media closed with a weakness of 0.48 percent and Nifty India Defense closed with a weakness of 0.70 percent. SBI, Bajaj Finserv, Bajaj Finance, Maruti Suzuki, HCL Tech, L&T, M&M, Infosys, Kotak Mahindra Bank, HDFC Bank, ITC, ICICI Bank and Titan were among the gainers in the Sensex pack. BEL, Sun Pharma, Trent, Eternal (Zomato) and HUL were the losers.

Why did the stock market rise suddenly?

RBI’s work to accelerate growth in India monetary policy committee (MPC) cut interest rates, due to which the repo rate has reduced by 0.25 percent to 5.25 percent. Along with largecaps, midcap shares also witnessed a rise. The Nifty Midcap 100 index closed at 60,594.60, up 294.80 points or 0.49 per cent. At the same time, Nifty Smallcap 100 index closed at 17,507.75 with a weakness of 100.10 points or 0.57 percent.

Market gets momentum due to repo rate cut

On monetary policy, Pankaj Chadha of EEPC India said that RBI reducing the repo rate by 25 basis points to 5.25 percent will reduce the borrowing cost and along with it the economic growth will also get a boost. There itself, SBI Securities Sudeep Shah, Technical and Derivatives Research Head, said that the resistance level for Nifty is between 26,300 and 26,350. If it sustains beyond 26,350 then it can go up to 26,500.

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The stock market opened with a decline

The Indian stock market started with a decline. At 9.30 am, the Sensex was trading at 85,248 levels after a marginal decline of 17.32 points or 0.02 per cent. Nifty was at 26,035.85 after a marginal gain of 2.10 points or 0.01 per cent.