Markets rallied sharply on Friday after RBI Governor Sanjay Malhotra unveiled a surprise 50 bps rate cut and a Rs 2.5 lakh crore liquidity boost via a 100 bps CRR cut. The Sensex surged over 700 points, while Nifty Bank hit a record high. The MPC also shifted its stance to "neutral," signaling limited room for further rate cuts.