Mumbai: Stock market benchmark indices Sensex and Nifty rallied in morning trade on Friday after the RBI cut interest rates by 25 basis points in a bid to further bolster economic growth.

After volatility in early trade, the 30-share BSE Sensex later bounced back, advancing 318.71 points to 85,584.03. The 50-share NSE Nifty also climbed 95 points to 26,128.75.

Shrugging off concerns over the rupee's depreciation, the RBI has cut the interest rate by 25 basis points to 5.25 per cent in a bid to bolster further economic growth, which rose to a six-quarter high of 8.2 per cent in the second quarter of the current financial year.

The development is expected to make advances, including housing, auto and commercial loans cheaper.

Announcing the fifth bi-monthly monetary policy for the curren

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