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RBI Holds Repo Rate and Cuts CRR by 50 bps,Sensex and Nifty

The Indian stock markets, represented by the Sensex and Nifty, are trading flat today as the Reserve Bank of India (RBI) announced key policy decisions.

RBI Policy Decisions:

  1. Repo Rate Unchanged: The RBI has kept the repo rate steady, continuing its accommodation stance to support economic growth while monitoring inflation.
  2. CRR Cut by 50 Basis Points: The Cash Reserve Ratio (CRR) has been reduced by 50 basis points, which will release liquidity into the banking system, allowing banks to lend more.

Impact on Markets:

  • Sensex and Nifty: Both indices are showing muted movements as investors digest the policy announcement.
  • Sectoral Impact:
    • Banking and Financial Stocks: Likely to benefit from the CRR cut as it increases funds availability.
    • Consumer Stocks: Remain in focus due to expectations of increased spending.
    • IT and Export-oriented Stocks: Stable amid a steady interest rate environment.