Mumbai, June 6 -- The key domestic benchmarks continued to trade with major gains in mid-afternoon trade after the RBI cut the repo rate by 50 bps to 5.50%, amid a favorable domestic environment. Looking ahead, the MPC will closely monitor evolving domestic and global conditions to guide future policy moves. Market participants are also keeping a close watch on bond markets and global trade dynamics. The Nifty surged above the 25,000 level.

The higher-than-expected 50 bps rate cut decision by the MPC, though positive for growth, is slightly negative from the market perspective for the near term. The change in monetary stance from accommodative to neutral also indicates that more rate cuts are unlikely unless the situation warrants. This ...