RBI Cuts Rates for the First Time in 5 Years! Here’s Why NIFTY50 Could Hit 30,000 Sooner Than You Think

For the first time in the last five years, RBI has announced a rate cut of 25 bps. Interest rates have been reduced from 6.50% to 6.25%. This is historic and we are now in a rate cut cycle. Here’s why I think NIFTY50 will climb to 30,000 levels sooner than you might think: 1. Nirmala Tai has already delivered a budget that will be remembered for years. People earning up to ₹12 lakh don’t have to pay any tax, which will boost consumption growth and speed up economic activity in the country. 2. With tax cuts, people will have more money in hand. On top of that, we are now in a rate cut cycle where loans will become cheaper, injecting a lot of liquidity into the economy. This speaks a lot, our government is fully focused on growth right now. 3. Oil prices have already dropped 10% in the last three weeks. If it continues to fall further under Trump’s policies, India's inflation will remain under control, allowing RBI to reduce rates even further. Remember, all the 6 MPC members have unanimously voted for a rate cut. 4. The US is in a tariff war with China, Canada, Mexico, and possibly Europe soon, while India has been exempted. This means prices in these countries will rise sharply. They will need cheaper imports, and that’s where India can step in, potentially achieving record-level exports in FY25-26. More money in people’s hands, an economy in a rate cut cycle, falling oil prices, no war, and no tariffs on India while the US battles a trade war with major economies, this puts us in the sweetest position ever. I just hope there are no surprises and hiccups. We are on track to achieve high growth in upcoming times which will improve market sentiment, boost corporate earnings, bring back FIIs, and push NIFTY50 towards 30,000!