Rate-sensitive stocks trade lower post RBI move to cut repo rates

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) announced a cut of 25 basis points on the repo rate to 6 percent, while the reverse repo rate was reduced to 5.75 percent.

The last time the MPC revised the key policy rate was at its inaugural policy review in October last year, when the repo rate was cut by 25 basis points to 6.25 percent.

After the central bank announced its decision, rate sensitive stocks continued to trade mixed.

Banking stocks traded in the red, with the PSU bank index on Nifty falling half of a percent. Meanwhile, the Bank Nifty fell nearly quarter of a percent. Meanwhile, the BSE banking index was trading down by 0.20 percent.

Real estate stocks, on the other hand, were trading in the red as well, with the BSE Realty index down about 0.35 percent, while the Nifty Realty index was trading lower as well by 0.35 percent.

Capital goods stocks, meanwhile, traded in the red. The BSE Capital Goods index was down about 0.75 percent.

Auto stocks too were trading lower post the crucial announcements as the BSE auto index was lower by 0.32 percent. On the Nifty, the index was lower around 0.43 percent.