The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) announced a 25 basis points cut in the repo rate, reducing it to 5.25%. This move, supported by low inflation of 2.2%, drove Indian stock markets higher. Rate sensitive sectors saw strong reactions, with Nifty Bank, Nifty Auto, and Nifty Realty all posting gains. The Nifty Realty index rose 1%, while Nifty Bank and Nifty Auto gained 0.5% each.