Sensex Surges Over 300 Points, Nifty Crosses 26,100 After RBI Cuts Repo Rate

The Indian stock market rallied on Friday after the RBI reduced the repo rate by 25 bps to 5.25% in its fifth bi-monthly policy for FY26. Both benchmark indices opened strongly and stayed in the green through the session.

Sensex and Nifty Move Higher

• Sensex is up 338.39 points (0.40%) at 85,603.71
• Nifty 50 is up 109.05 points (0.42%) at 26,142.80
• Nifty Bank is up 0.55%

Sectors linked to interest rates, real estate, autos, PSU banks, financials, and IT, led the gains.

Top Gainers and Losers on Nifty 50

Top gainers in today’s market included Shriram Finance, Bajaj Finance, Hindalco, Bajaj Finserv, and Infosys, which saw strong buying interest across sectors. 

On the other hand, the major losers were Hindustan Unilever, InterGlobe Aviation, Sun Pharma, Trent, and Tata Motors Passenger Vehicles, which experienced selling pressure during the session.

RBI Policy Highlights

The Monetary Policy Committee, led by Governor Sanjay Malhotra, unanimously voted to cut the repo rate. Key updates include:

• Repo rate reduced to 5.25%
• Policy stance: Neutral
• FY26 GDP growth estimate: Raised to 7.3% (from 6.8%)
• FY26 inflation forecast: Reduced to 2%

This was the fifth rate cut of 2025, with total cuts adding up to 125 bps since February.

Governor Malhotra described the economy as being in a “Goldilocks phase”, with strong GDP growth (8%) and low inflation (2.2%), supported by firm rural and urban demand and rising investments.

Also Read: Best Gold Mutual Funds in India for Dec 2025!

Liquidity Measures and Rupee Outlook

To support liquidity, the RBI will conduct:

• ₹1,00,000 crore OMO purchases on December 11 and 18
• A $5 billion USD/INR swap on December 16

Conclusion

The RBI’s 25 bps rate cut gave a clear boost to market sentiment, lifting major indices and rate-sensitive sectors. Strong growth expectations, lower inflation, and liquidity support further strengthened confidence. While the rupee may stay volatile, the overall policy direction suggests a supportive environment for economic and market growth heading into FY26.

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