The Reserve Bank of India (RBI) has surprised the markets by trimming down interests rates in a bid to spur growth in Asia's second-largest economy. In this unscheduled & unexpected move, the central bank has cut its repo rates by about 25 basis points to 7.75%, its first cut since March 2013. The RBI was not scheduled to meet on monetary policy until February 3. As per the most recent inflation data, the Wholesale Price Index (WPI) of India has eased to just 0.1% largely because of decline in oil prices. This has given the central bank more room to cut down key interest rates. Following the announcement, the Indian stock markets have surged by more than 2.4% in a single trading session. The BSE Sensex gained more than 650 points to cross 28,000 mark & NSE Nifty gained some 198 points to reach 8,474 points. The realty index jumped 7.8% while the banking stocks surged 3.25%. The Indian Rupee to its part rallied against USD, strengthening by about 53 paise to close at a two-month high of 61.65 per USD.
On Thursday, Indian share markets were the star-performers in Asia
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