Sensex breaches 30K-mark, Nifty above 9,100 after RBI rate cut

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sensexThe markets on Wednesday opened at a record high after the Reserve Bank of India, in a surprise move, cut repo rate by 25 basis points to 7.5 per cent.

The 30-share index crossed the 30,000-mark by surging 431.01 points, or 1.45 per cent, to trade at an all-time high of 30,024.74 and the National Stock Exchange index Nifty breached the 9,100-mark for the first time by climbing 122.95 points, or 1.36 per cent, to 9,119.20.

All the sectoral indices, led by banking and realty, were trading in positive zone with gains up to 2 per cent.

The Reserve Bank of India signaled that it was convinced by the fiscal consolidation measures announced in the Budget 2015. The RBI has kept the cash reserve ratio (CRR) unchanged at 4 per cent.

Meanwhile, the rupee strengthened by 27 paise to trade at 61.65 against the dollar in early trade on Wednesday at the Interbank Foreign Exchange after the RBI cut interest rates by 0.25 per cent to 7.5 per cent.

Forex dealers said besides a higher opening in domestic equity market, the dollar’s weakness against other Asian currencies supported the rupee.

The developments come days after Finance Minister Arun Jaitley’s Union Budget announcement.