Mumbai, Feb 7 (IANS) The key Indian equity indices traded in the green on Thursday afternoon after the Reserve Bank of India (RBI) announced a rate cut of 25 basis points.
On Thursday, the final monetary policy review of the current fiscal, the RBI lowered its key lending rate for commercial banks to 6.25 per cent.
A policy rate cut would lead to lower interest rates for loan seekers and hence lift demand in the market.
Around 11.49 a.m., the BSE Sensex touched an intra-day high of 37,172.18 points, rising nearly 200 points or 0.53 per cent from the previous close, moments after the apex bank announced the rate.
The NSE Nifty50 gained 52.85 points or 0.47 per cent to 11,115.30 points post the announcement.
The indices, however, trimmed gains as the RBI Governor in his media statement said that the credit flow has been slow and investment demand also lowered pace in the third quarter of financial year 2018-19.
At 12.25 p.m., the BSE Sensex traded at 37,039.70 points, higher by 64.47 points or 0.17 per cent from the previous close of 36,975.23 points.
The Nifty50 on the National Stock Exchange traded higher by 26.65 points or 0.24 per cent at 11,089.10, from the previous close of 11,062.45 points.