RBI Holds Interest Rates as Realty, Auto, and Bank Stocks Tumble

The Reserve Bank of India maintained its benchmark interest rate and stance for the ninth consecutive policy meeting, citing high food inflation. This led to a significant decline in interest rate-sensitive stocks including realty, auto, and bank sectors. The BSE indices for these sectors showed notable losses.

The Reserve Bank of India (RBI) opted to hold its benchmark interest rate and stance steady during its ninth consecutive policy meeting, amidst ongoing high food inflation concerns.

This decision resulted in a noticeable decline in interest rate-sensitive stocks, particularly in the realty, auto, and banking sectors. Traders saw shares of Godrej Properties, Macrotech Developers, and other realty stocks significantly drop, reflected in the 1.22% dip of the BSE realty index to 7,862.76.

The auto sector also experienced downturns, with TVS Motor Company and Apollo Tyres among others leading the decline. The BSE auto index fell by 0.34% to 56,388.11. In the banking sector, giants like Bank of Baroda and Canara Bank saw mixed results, culminating in a nearly flat performance of the BSE bank index at 57,033.81.