Fri Dec 05 09:00:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:

Indian Stock Market Surges After RBI Rate Cut, Sensex Jumps 500 Points

Mumbai, India – December 5, 2024 – Indian stock markets experienced a strong recovery on Friday, with the Sensex surging as much as 500 points during the trading session. The Nifty also soared, approaching the 26,200 mark. The rally was largely fueled by the Reserve Bank of India’s (RBI) decision to cut interest rates, boosting investor sentiment and reversing early morning losses.

At approximately 12:45 PM, the BSE Sensex was trading at 85,749.72, up 484.07 points or 0.57%. The Nifty stood at 26,189.50, reflecting a gain of 155.75 points or 0.60%. The IT, Realty, Banking, and Metal sectors led the gains.

Key Factors Driving the Market Rally:

  • RBI Rate Cut: The RBI’s Monetary Policy Committee (MPC) announced a 0.25% reduction in the repo rate, bringing it down to 5.25%. This move is expected to lower borrowing costs, making loans cheaper for consumers and businesses, and stimulate economic activity.
  • Financial Sector Gains: Financial stocks saw significant buying interest following the rate cut. The Nifty Financial Services Index climbed 0.8%, while the Bank Nifty and PSU Bank Index rose by 0.5% and 0.8%, respectively.
  • Crude Oil Prices Ease: Brent crude oil prices dipped by 0.17% to $63.15 per barrel, easing inflationary pressures and reducing input costs for various sectors.
  • Positive Global Cues: Asian stock markets generally showed positive trends, with South Korea’s Kospi and China’s Shanghai Composite Index trading in the green, contributing to the positive sentiment.
  • India VIX Falls: The India VIX index, a measure of market volatility, fell by 2.29% to 10.57, indicating a decrease in investor anxiety and an increased appetite for risk.

“Strong corporate earning growth coupled with the repo rate cut is boosting stock market sentiment,” said Rahul Singh, CIO at Tata Asset Management, in a conversation with Reuters. “If the U.S. Federal Reserve also cuts interest rates at next week’s meeting, it will provide further support to Nifty valuations.”

While the market closed in positive territory, analysts advise investors to remain cautious and consult with certified experts before making any investment decisions, given ongoing global economic uncertainties.

[Mention of Block Deal in ITC Hotels – Can be included if deemed highly relevant, otherwise, it’s secondary information].

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