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(15/1/2015 - StockInvestingTips Bureau) - It turned out to be surprisingly good day for Indian stock markets today. Sudden reduction in repo rates by RBI from current 8 percent to 7.75 pts, a reduction by 25 basis points. provided much needed boost to investor sentiments. It came in as a surprise as any decision on repo rate was to be announced by RBI on february 3, 2015. Special thanks to falling oil prices, which helped in easing inflation.
It should be noted that it is first repo rate cut of 2015 and first since may 2013. Bombay Stock Exchange's benchmark index SENSEX anded the day at 28075.55 pts, up by a whopping 728.73 pts which is a increase of 2.5 percent. Similarly broader index NIFTY 50 also closed up by 216.60 pts at 8494.15 pts. Realty sector was happiest as optimism about fall in home loan prices rose.
Cut in repo rate by RBI means it would lend money to banks at 7.75% instead of 8%, thus banks can pass on the benefit to the customer which would definitely boost the realty sectoe and finance sector of the economy and also bring an overall positive energy in the economy and stock market which is currently reeling under pressure of global economic voes and falling oil prices.
Hence we have some cheer on the faces of bulls at Dalal Street and a peaked optimism about economy. BSE's Realty Index ended the day up by a whopping 8 percent today, Banking index up by 3.2 percent. This bull run might continue even tomorrow, keep your fingers crossed though as Switzerland shock might show a very mild impact on Indian markets tomorrow.
It should be noted that it is first repo rate cut of 2015 and first since may 2013. Bombay Stock Exchange's benchmark index SENSEX anded the day at 28075.55 pts, up by a whopping 728.73 pts which is a increase of 2.5 percent. Similarly broader index NIFTY 50 also closed up by 216.60 pts at 8494.15 pts. Realty sector was happiest as optimism about fall in home loan prices rose.
Cut in repo rate by RBI means it would lend money to banks at 7.75% instead of 8%, thus banks can pass on the benefit to the customer which would definitely boost the realty sectoe and finance sector of the economy and also bring an overall positive energy in the economy and stock market which is currently reeling under pressure of global economic voes and falling oil prices.
Hence we have some cheer on the faces of bulls at Dalal Street and a peaked optimism about economy. BSE's Realty Index ended the day up by a whopping 8 percent today, Banking index up by 3.2 percent. This bull run might continue even tomorrow, keep your fingers crossed though as Switzerland shock might show a very mild impact on Indian markets tomorrow.
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