RBI rate cut sends cheers down Dalal Street; Sensex crosses 30,000
Raghuram Rajan, the governor of India's Reserve Bank on Wednesday said that the Bank has decided to bring key repo rate down by another 25 basis points. The short term lending rate now stands at 7.5%.
Reserve Bank of India's second surprise rate cut in as many months met with a roar on the Indian Stock Markets on Wednesday.
The Bombay Stock Exchange's Sensex touched a high of 30,024 and the National Stock Exchange's Nifty reached 9119. However, the two gave up some of the gains and at 10.10 am, the Sensex stood at 272 points higher, or 0.92%, and Nifty was trading at 9069, up 0.81%.
Raghuram Rajan, the governor of India's Reserve Bank on Wednesday said that the Bank has decided to bring key repo rate down by another 25 basis points. The short term lending rate now stands at 7.5%.
He said, "The guidance on policy action given in the fifth-bi-monthly monetary policy statement of December 2014 is largely unchanged. Further monetary actions will be conditioned by incoming data, especially on the easing of supply constraints, improved availability of key inputs such as power, land, minerals and infrastructure, continuing progress on high-quality fiscal consolidation, the pass through of past rate cuts into lending rates, the monsoon out-turn and developments in the international environment."