Indian stocks jump again after surprise rate cut

Indian equities stood out in Asian trading overnight after the Reserve Bank of India (RBI) announced a surprise cut to interest rates in order to combat falling inflation.

In an unscheduled meeting, the RBI cut the base rate from 8% to 7.75%, pointing to the “headroom” offered by lower inflationary pressures. Wholesale price inflation in the country has sat near the 0% mark for the past two months. Expectations that the cut marks the beginning of a loosening policy cycle helped drive a sharp rise in the country’s benchmark Sensex index as a result. The Sensex was up 2.5% at 28,019 in late trading, regaining recent weeks’ lost ground after a slight dip in December. The index remained one of the best performing benchmarks of 2014 despite that stutt...