A big news indeed. The decision to reduce the repo rate by 50 bps or 0.5% takes the total decrease in the repo rate by 1% in a short span of 6 months. The move also signals the central bank's confidence in the growing resilience of the country's economy which is increasingly exhibiting signs of certainty in the dynamically evolving global economic order. For the real estate sector, it will translate into an increase in new homeownership numbers.
Deepak Kapoor
Director
1
The RBI's decision to lower the repo rate by 50 basis points sends a strong pro-growth signal and undoubtedly benefits the real estate sector. Amidst the positive sentiments prevailing in the real estate sector, the decision will make the home-buying process for first-time homebuyers increasingly accessible.
Sandeep Chhillar
Founder and Chairman
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The RBI’s rate cut and neutral stance are likely to support market momentum in the near term, especially in sectors that react positively to lower interest rates.
Puneet Singhania
Director at Master Trust Group
The Indian stock market responded optimistically to the RBI’s surprise and aggressive growth-push policy. The substantial rate cut and liquidity boost via the are expected to ensure swift transmission of lower rates, reinforcing the RBI's commitment to supporting economic growth, boosting investments, and stimulating consumption.
Vinod Nair
Head of Research
The Nifty rose sharply following the RBI’s policy move and closed above the 25,000 mark after several sessions, signaling rising optimism. Typically, a rally followed by consolidation results in an upward breakout. This time too, we expect Nifty to break out above the recent consolidation range.
Rupak De
Senior Technical Analyst at LKP Securities
Key Facts
- RBI cut the repo rate by 50 basis points to 5.5%, marking the third consecutive reduction in 2025, signaling a strong commitment to stimulate domestic demand, ease credit, and boost investment.1
- Banks including Bank of Baroda, Punjab National Bank, UCO Bank, and Bank of India reduced lending rates by 50 basis points following the RBI's repo rate cut to pass benefits to borrowers.
- Indian stock markets responded positively with the Sensex rising by 747 points to 82,188 and the Nifty crossing the 25,000 mark, reflecting investor optimism.
- Foreign Institutional Investors (FIIs) increased equity purchases with buys worth Rs 1,009.71 crore on Friday, supporting the market momentum.
- Real estate sector saw renewed buyer confidence and improved affordability due to lower borrowing costs, with developers expecting increased homeownership and fresh liquidity in projects.2
- RBI cut the Cash Reserve Ratio (CRR) by 100 basis points, injecting Rs 2.5 trillion liquidity into the banking system to spur credit growth and boost sentiments in rate-sensitive sectors.
- US-India trade talks have been extended as both sides seek consensus on tariff cuts in farming and auto sectors, aiming to finalize an interim deal before the July 9 deadline.1
- Market experts predict continued positive bias for Indian markets supported by RBI's rate cut and optimism surrounding the US-India trade deal talks.
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Key Stats at a Glance
RBI repo rate after cut
5.5%
1
RBI repo rate cut
50bps
1
Bank of Baroda lending rate after cut
8.15%
Punjab National Bank lending rate after cut
9.10%
Punjab National Bank lending rate before cut
9.60%
Bank of India lending rate after cut
8.75%
Sensex gain on RBI rate cut day
746.95 points
Sensex closing level
82,188.99 points
FII equity purchases on Friday
Rs 1,009.71 crore
RBI CRR cut
100bps
Liquidity injected via CRR cut
Rs 2.5 trillion
US-India trade deal deadline
July 9
1
Nifty 50 gain on June 6
1%
1
Nifty gain on RBI cut day
252 points
Nifty closing level
25,003 points