By Daniel Hunter

The Reserve Bank of India has cut interest rates for a second time since the start of the year, a move that has surprised most market analysts.

The central bank has cut its repo rate, the rate at which it lends to commercial banks, from 7.75% to 7.5% having only reduced rates from 8% in January.

Both cuts have come outside of scheduled meetings of the Reserve Bank of India, which means the announcements have come as a huge surprise for market experts.

India's currency and stock markets reacted well to the news. The rupee was up to 61.88 against the US dollar, it's strongest position since the beginning of February. And the BSE Sensex index increased by 1.4% to the all-time high of 30,010.91. It is the first time the benchmark has risen above 30,000.00.