New Delhi, Dec. 8 -- The Reserve Bank of India delivered a big positive for the Indian stock market - a 25 bps repo rate cut coupled with a Rs.1.45 lakh crore liquidity infusion - with analysts flagging NBFCs, small- and mid-sized (SMID) banks, and automobile companies as the biggest beneficiaries.

According to Seshadri Sen, Head of Research and Strategist at Emkay Global Financial Services, the RBI policy decisions addresses stress in the bond market, eases domestic liquidity constraints, and should support equity market sentiment in the near term.

The liquidity injection - through Rs.1 lakh crore of open market operations (OMOs) and a $5 billion ( Rs.45,000 crore) USD/INR swap - triggered a rally in sub-5-year bond yields, significant...