Sensex and Nifty reach all-time highs as the RBI raises its forecast for FY25 GDP growth.
The six-member Monetary Policy Committee (MPC) of the RBI raised the FY25 real gross domestic product (GDP) prediction by 20 basis points to 7.2% from the 7% predicted in the April policy, while maintaining the repo rate at 6.5%. The monetary policy was released on Friday.
The Reserve Bank of India's (RBI) upward adjustment of the FY25 real GDP growth prediction to 7.2% on Friday lifted market optimism and sent benchmark stock market indices, the Sensex and the Nifty, surging over 2 percent to record highs.
The National Democratic Alliance (NDA), led by the Bharatiya Janata Party (BJP), is expected to form the government for the third time, therefore buying in the market was also seen as an attempt to ensure policy continuity.
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