India's economy expanded at a brisk 7.4% in the last quarter, demonstrating strong underlying momentum.

Following the announcement, the Sensex, one of India's main stock indices, rose by nearly 1%, with banking stocks leading the charge.

This positive market reaction is understandable: cheaper credit translates to increased spending by consumers and businesses alike, fostering higher economic growth.

Moreover, lower interest rates will reduce mortgage costs, benefiting homebuyers within India's expanding middle class.