Auto, bank, financial, real estate stocks rally as RBI’s MPC keeps repo rate unchanged

Rate-sensitive stocks like auto, real estate, banking and financial stocks were trading higher on Wednesday, April 8, as the Reserve Bank of India (RBI) kept its repo rate unchanged.

The central bank's six-member Monetary Policy Committee (MPC), headed by Governor Sanjay Malhotra, unanimously decided to keep the repo rate unchanged at 5.25% for the second straight meeting and maintained its policy stance as neutral.

The MPC raised India's real gross domestic product (GDP) forecast for financial year 2026 to 7.6% from its earlier growth forecast of 7.4%. For the current financial year, however, Governor Malhotra predicted GDP growth forecast of 6.9%. The forecast for the first quarter of current fiscal was slashed to 6.8% from its earlier projection of 6.9% amid geopolitical tensions in West Asia.

Auto stocks

Following the rate decision, the Nifty Auto index surged 6.42% to 25,937.25 after hitting an intraday high of 26,029.30. All 15 stocks of the index were trading in the green.

Shares of Ashok Leyland (11.42%), Mahindra & Mahindra (6.79%), Maruti Suzuki (6.8%), Tata Motors (7.6%) and Eicher Motors (6.14%) were the top gainers.

Banking stocks

The Nifty Bank index, which comprises 14 stocks, touched an intraday high of 5.2% at the 55,504.15 level. The Nifty PSU Bank and the Nifty Private Bank index were both trading in the positive territory.

AU Small Finance Bank, Union Bank of India and IndusInd Bank led the rally, rising 7.81%, 7.25% and 6.89%, respectively. Bank of Baroda (6.18%) and Axis Bank (6.06%) were also among the top five gainers on the Nifty Bank index.

Financial sector stocks

The Nifty Financial Services index was trading 5.54% higher at 28,388.15. It had touched an intraday high of 28,393.45, with all the 20 constituents trading in green.

Shares of Shriram Finance (10.55%), Cholamandalam Investment and Finance Company (8.9%), Max Financial Services (8.01%), BSE Limited (7.7%) and Bajaj Finance (7.66%) were the top contributors on the index.

Real estate stocks

The real estate stocks were also seen higher, with the Nifty Realty index jumping 7.3% to touch an intraday high of 749.75 level. All 10 constituents were trading in green.

Aditya Birla Real Estate (8.94%), Prestige Estates Projects (7.78%), Lodha Developers (7.57%), Sobha (6.94%) and Pheonix (6.52%) were the top gainers.