New Delhi, June 6 -- Shares of banking and financial services companies soared on Friday after the Reserve Bank of India (RBI) delivered a larger-than-expected 50 basis point (bps) cut in the benchmark repo rate and a surprise 100 bps reduction in the Cash Reserve Ratio (CRR). The Monetary Policy Committee's (MPC) aggressive move, along with a shift in policy stance from 'accommodative' to 'neutral', injected fresh optimism into the markets.

The RBI cut the repo rate to 5.50 percent and slashed the CRR by 100 bps in a staggered manner, signaling a clear pivot toward boosting liquidity and credit growth. The CRR, which dictates the portion of deposits that banks must park with the central bank, will now be reduced by 25 bps each over four...