After a five-year hiatus, the RBI begins a rate-cut cycle. Will this lead the Nifty 50 to regain the 25K mark?

In an effort to stimulate the faltering economy, the Reserve Bank of India lowered the benchmark repo rate by 25 basis points on February 7. The Sensex and Nifty 50 had considerable volatility during the day, even though they met expectations.

On Friday, February 7, the Reserve Bank of India (RBI) lowered the benchmark repo rate by 25 basis points after almost five years, indicating a concerted effort with the government to boost the faltering Indian economy. The Monetary Policy Committee (MPC) of the RBI maintained its "neutral" policy stance while reducing the repo rate by 25 basis points.

The indices of the Indian stock market, the Sensex and Nifty 50, saw considerable volatility even though the policy decision mostly fulfilled expectations. Throughout the session, the Nifty 50 oscillated between an intraday high of 23,694.50 and a low of 23,493.60, while the Sensex moved by more than 600 points.