RBI cuts repo rate by 50 bps

The Reserve Bank of India on Tuesday in its monetary policy review has announced to cut repo rate by 50 basis points. The data on Wholesale Price Index (negative 4.9 per cent) and Consumer Price Index (3.66 per cent) continue to reflect a benign inflationary environment.

The market recovered sharply with the Nifty hitting 7800-mark after the Reserve Bank of India, surprisingly, cut repo rate by 50 basis points. Economists were expecting a 25 basis points cut in repo rate. The Sensex gained 16 points to 25633 and the Nifty rose  7 points to 7802.