RBI MPC keeps rate unchanged: From auto, banks to real estate stocks, here’s how rate-sensitive stocks are faring

The Reserve Bank of India's Monetary Policy Committee (MPC), headed by Governor Sanjay Malhotra, unanimously decided to keep the repo rate unchanged at 5.25% while maintaining its neutral stance in the backdrop of uncertainties about southwest monsoons and El Nino.

Governor Malhotra noted that headline inflation is set to rise in the near term fuelled by higher oil and food prices, and will peak in the third quarter before starting to decline. The West Asia conflict continues to challenge the global economy by disrupting key trade routes, Malhotra said.

Auto stocks

Following the rate decision, the NIFTY Auto index surged 1.32% to touch an intraday high of 29,424.90. All 15 stocks of the index were trading in the green.

Bosch was the most contributing stock, climbing 3.7%, followed by Hero MotoCorp (2.5%), TVS Motors (1.7%), Tube Investments of India (2.5%) and Bajaj Auto (0.47%).

Banking stocks

The NIFTY Bank index, comprising 14 stocks, declined up to 0.5% during intraday trade to hit a low of 57,603.95. Meanwhile, the NIFTY PSU Bank index traded higher, rising 1.3%, whereas the NIFTY Private Bank index was down nearly 1%.

The Federal Bank (-1.43%), Axis Bank (-0.87%) and Kotak Mahindra Bank (-0.72%) were the top losers on the private sector gauge. Meanwhile, Bank of Maharashtra (1.4%), Bank of Baroda (1.17%) and Indian Bank (1.16%) were the top gainers on the NIFTY PSU Bank index.

"For the banking sector, this pause offers greater predictability around funding costs and interest rates, while supporting continued credit demand across retail, MSME and business segments. Going forward, the trajectory of inflation, liquidity conditions and global developments will remain key factors in shaping the RBI’s policy direction," said Sandeep Agarwal, CEO & CIO, Modulus Alternatives.

Financial sector stocks

The NIFTY Financial Services index was also down at 29,266.80. It had touched an intraday low of 29,259.80 level, with 12 out of 20 constituents trading in red.

Real estate stocks

The real estate stocks were also seen higher, with the NIFTY Realty index jumping almost 3% to touch an intraday high of 915.10 level. All 10 constituents were trading in green.

Godrej Properties was the biggest gainer, surging 4.66%, followed by Oberoi Realty (2.64%), Prestige Estates Projects (2.44%), Phoenix (1.45%) and Lodha Developers (2.15%).

“For real estate, rate stability is a positive signal heading into the festive season, which is typically the strongest period for housing demand in India. We expect this continuity to support healthy residential sales momentum through the second half of 2026, particularly in the mid and premium segments where affordability is closely tied to interest rate sentiment,” said Anshuman Magazine, Chairman & CEO--India, South-East Asia, Middle East & Africa, CBRE.