The Reserve Bank of India (RBI) on Friday cut benchmark interest rate by 75 basis points to 4.4 percent to deal with the hardship caused due to the outbreak of COVID-19.
The central bank also reduced the cash reserve ratio (CRR) of all banks by 100 basis points to 3 percent with effect from March 28 for 1 year.
RBI will maintain accommodative stance, Governor Shaktikanta Das said while announcing decisions of Monetary Policy Committee (MPC).
"MPC voted for a sizeable reduction in interest rate," he said.
Markets wiped off early gains after the announcement as bigger cuts were anticipated.
As of 10:37 am, Sensex was at 30,387.71, up 440.94 points, down over 500 points from it's day's high. Nifty was at 8,828, down nearly 200 points from its day-high.