RBI Monetary Policy, Feb. 7 -- The Reserve Bank of India (RBI) avoided disappointing the market by announcing a 25-basis-point rate cut on Friday, February 7-the first in nearly five years. The central bank cut benchmark policy rates by 25 bps to 6.25 per cent from 6.50 per cent and maintained the policy stance as 'neutral'.

Since a rate cut was fairly discounted, the RBI's rate cut move did not give any immediate fillip to the Indian stock market as the key indices - the Sensex and the Nifty 50- remained rangebound after the policy announcement.

However, experts believe a 25 bps rate cut is positive for rate-sensitive segments, such as automobile, realty, consumer durables and banks.

"The 25 bps RBI rate cut is on the expected lines, ...