Mumbai: The markets reacted positively at the closing hours here today after the Reserve bank of India announced its decision of slashing repo rate by 25 basis points.
The central bank has reduced the key lending rate to 6.25 per cent from the earlier 6.50 per cent.
The S&P Sensex ended 91 points higher or 0.32 per cent at over 28,334 at the closing hours today. The Nifty 50 also witnessed a rise with the index going up by 31 points or 0.36 per cent to end at over 8,769.
The Bank Nifty also recorded a surge as with the index going up by around 84 points or 0.43 per cent to reach the peak of 1,9672.70.
The rate cut has added to the sentiment that the banks will pass the benefits on to their customer and home loan seekers as lesser rate will make loan cheaper.
