Mumbai, June 6 || The domestic benchmark indices surged on Friday after the Reserve Bank of India (RBI) reduced repo rate by 50 basis points to 5.50 per cent and cash reserve ratio (CRR) by 100 basis points (in four tranches).
Sensex gained 746.95 points or 0.92 per cent at 82,188.99 and the Nifty rose 252.15 points or 1.02 percent to close at 25,003.05.
The rise was led by banking stocks. Nifty Bank closed at 56,578.40, up 817.55 points or 1.47 per cent. During the day, Bank Nifty touched the level of 56,695, which is the highest level of the main banking index so far.
Along with largecaps, midcaps and smallcaps also witnessed a rise. The Nifty Midcap 100 index was up 707.30 points, or 1.21 per cent, at 59,010.30, and the Nifty Smallcap 100 index was up 149.85 points, or 0.81 per cent, at 18,582.45.
Rupak De from LKP Securities said the stock index has moved up sharply following a bazooka policy move by the RBI.
“It closed above the 25,000-mark after several sessions, indicating a surge in optimism among market participants. Typically, a rally followed by consolidation often results in an upward breakout, and this time too, we expect Nifty to break out above the recent consolidation range,” De noted.