Fri Feb 07 08:51:02 UTC 2025: ## RBI Rate Cut Fails to Boost Indian Markets; Rupee Hits New Low
**Mumbai, India** – Indian stock markets fell today despite the Reserve Bank of India (RBI) cutting its key repo rate by 25 basis points for the first time in over three years. The Sensex and Nifty indices both closed lower, reflecting ongoing concerns about the slowing economy.
The rate cut, aimed at stimulating growth and boosting spending, failed to inspire investor confidence. The RBI’s move comes as India’s economic growth is projected to be at its weakest point in four years. Analysts attributed the market’s negative reaction to lingering concerns about weakening demand.
Rajeev Radhakrishnan, CIO – Fixed Income at SBI Mutual Fund, and Kanika Singh, Chief Risk Officer at IMGC (India Mortgage Guarantee Corporations), did not comment directly on the market’s response but their presence highlights the significance of the RBI’s decision within the financial sector. Governor Sanjay Malhotra’s comments were not publicly available at the time of publication.
Adding to the negative sentiment, the Indian rupee weakened to a new low of 87.577 against the US dollar.
First Piper 