As soon as the rate cut was announced by Finance Minister Nirmala Sitharaman, stock markets skyrocketed in euphoria and both Sensex and Nifty ended the day with over 5 per cent gains.
The move is aimed at allaying the domestic industry’s fears that any free trade agreement with China through RCEP (Beijing is a member) will result in massive dumping of highly-subsidised items, mostly diverted due to the ongoing trade war.
