Tue Jan 28 16:47:44 UTC 2025: ## Indian Stock Market Surges on RBI Liquidity Boost

**Mumbai, India** – India’s benchmark indices, the BSE Sensex and Nifty 50, experienced a significant rally today, fueled by the Reserve Bank of India’s (RBI) measures to increase liquidity in the banking system.

The Sensex surged over 1,100 points, while the Nifty 50 crossed the 23,100 level. At the close of trading, the Sensex gained 535 points (0.71%), settling at 75,901.41, and the Nifty 50 rose 128 points (0.56%), closing at 22,957.25.

The RBI’s actions, including open market operations (OMO) purchases of government securities totaling ₹60,000 crore in three installments and a ₹50,000 crore 56-day Variable Rate Repo (VRR) auction, injected significant cash into the banking system. Additionally, a USD/INR buy/sell swap auction for $5 billion was announced.

These measures have fueled speculation of a potential interest rate cut at the Monetary Policy Committee (MPC) meeting in February. Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented that the market was previously oversold but is now poised for an upswing. He highlighted the positive impact of the increased liquidity on the banking sector, increasing the likelihood of a repo rate cut. The banking and finance sectors performed particularly strongly today in response to the RBI’s announcements.

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