On June 6, RBI reduced the key repo rate from 6% to 5.5%, its most aggressive cut since Covid-era easing. The rate cut comes amid US President Donald Trump's tariff threat, which could mean an export shock and global bond yield chaos.

The Reserve Bank of India's decision to cut the repo rate by 50 basis points aims to revitalize economic growth and stimulate demand, particularly benefiting the auto sector through cheaper loans and increased liquidity.

India's benchmark indexes rose on Thursday, led by heavyweight Reliance Industries and rate-sensitive sectors such as financials and realty ahead of a widely expected policy rate cut by the central bank.