Auto, bank, real estate stocks trade mixed as RBI’s MPC keeps repo rate unchanged

Rate-sensitive stocks like auto, real estate, banking, and financial stocks were trading mixed on Friday, June 5, 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 third straight meeting and maintained its policy stance as neutral.

Governor Malhotra, in his address, said that the global economy remains clouded amid unprecedented challenges and, taking into account the current situation, the MPC unanimously decided in favor of the status quo on the policy interest rate with a neutral stance.

“We remain confident to withstand shocks with minimum pain amid heightened global uncertainties,” the governor said.

The central bank has also lowered its GDP growth projection to 6.6% from 6.9% earlier for the current fiscal (FY26-27).

Real estate stocks

The real estate stocks were also seen higher, with the Nifty Realty index jumping 1.5% to touch an intraday high of 776.75. At the time of writing the articles, seven out of 10 constituents were trading in green.

Prestige Estates Projects (2.61%), Phoenix (1.95%), Godrej Properties (1.13%), Lodha (0.91%), Oberoi Realty (0.63%), Aditya Birla Real Estate (0.51%), and DLF (0.18%) were the top gainers. While shares of Anant Raj (-1.36%), Brigade Enterprises (-0.36%) and Sobha (-0.16%) were trading lower after the announcement.

Auto stocks

The Nifty Auto index dropped 0.56% to 25,997.75 following the rate decision. All 12 out of 15 stocks of the index were trading in the red.

Shares of Hero MotoCorp (-1.85%), Tata Motors PV (-1.43%), Eicher Motors (-1.1%), Maruti Suzuki (-1.08%), and UNO Minda (-1.04%) were the top losers. However, Tube Investments of India (0.96%), Mahindra & Mahindra (0.1%), and Exide Industries (0.06%) were the only gainers.

Banking stocks

The Nifty Bank index, which comprises 14 stocks, touched an intraday high of 0.7% at the 54,732.20 level. The Nifty PSU Bank and the Nifty Private Bank index were seen mixed.

IndusInd Bank, AU Small Finance Bank, and Punjab National Bank led the rally, rising 1.66%, 1.1%, and 1.02%, respectively. Yes Bank (0.79%) and Canara Bank (0.62%) were among the top five gainers on the Nifty Bank index.

Federal Bank (-0.88%), Kotak Mahindra Bank (-0.63%), and HDFC Bank (-0.17%) were the only losing stocks on the index.