The Indian stock market concluded the trading week on a robust upswing this Friday, December 5, propelled by a significant monetary policy announcement from the nation's central bank. Investor sentiment turned decisively bullish following a dual-pronged stimulus move by the Reserve Bank of India.
RBI's Stimulus Fuels Market Rally
The rally was triggered by the Reserve Bank of India's decision to reduce the repo rate by 24 basis points. In a parallel move to ensure ample liquidity in the financial system, the central bank unveiled a substantial infusion plan. This involves injecting a staggering ₹1.45 lakh crore through a combination of bond purchases and dollar-rupee swaps. This decisive action aimed at supporting economic growth provided the catalyst for the market's positive momentum.
Benchmark Indices Post Strong Gains
Reflecting the optimistic mood, the key equity benchmarks recorded gains for the second consecutive session. The Sensex surged by 447 points, or 0.52%, to settle at 85,712.37. Similarly, the broader Nifty 50 index advanced by 153 points, translating to a gain of 0.59%, closing at 26,186.45.
Midcap and Smallcap Performance Diverges
While the frontline indices celebrated, the performance in the broader market was mixed. The BSE Midcap index managed a modest gain of 0.21%. However, the BSE Smallcap index bucked the trend, slipping by 0.67% during the session, indicating selective profit-taking in smaller stocks even as large caps rallied.
This remains a developing story, and market participants are advised to monitor further updates.
Disclaimer: This news article is prepared for educational purposes only. Readers are strongly recommended to consult with a qualified investment advisor before making any financial decisions.
