RBI Policy December 2025: Real estate, auto, financial stocks rally as MPC delivers 25 bps rate cut; NIFTY REALTY up over 1%

This results in the revised repo rate of 5.25%. The decision to cut the repo rate was unanimous, the governor stated.

The governor added that the policy stance has been maintained as 'neutral'.

The RBI governor, in his address, said that lower inflation and 8% GDP growth in H1 present a 'Goldilocks' period.

How stocks are faring

The benchmark indices, the S&P BSE SENSEX and the NSE's NIFTY50, were trading in the green following the RBI governor's address.

At the time of writing this article, the NIFTY50 index was trading at 26,088.05, up 54.30 points, or 0.21%, while the SENSEX was trading at 85,490.26, up 224.94 points, or 0.26%.

Rate-sensitive stocks

All rate-sensitive stocks were trading in positive territory. The NIFTY Bank was trading at 59,656.80 levels, up 368.10 points, or 0.62%, while NIFTY AUTO was trading at 27,838.10 levels, up 105.40 points, or 0.38%, while NIFTY REALTY was trading 1.21% higher at 900.90.

In the realty pack, nine out of 10 constituents were trading in the green. The top gainers were Prestige Estates Projects (up 1.6%), DLF (up 1.40%), and Oberoi Realty Ltd (up 1.61%).

Commenting on the RBI decision, Anuj Puri, Chairman – ANAROCK Group, said, "The RBI’s decision to cut the repo rate by 25 bps is a distinct positive for the Indian real estate sector as we close 2025. Coming on the back of earlier easing cycles this year, this move further sweetens the value proposition for homebuyers, particularly in the affordable and mid-income segments, which are highly sensitive to interest rate fluctuations."

Other key indices, such as Nifty Financial Services and Nifty PSU Bank, were trading in the green. The Nifty Private Bank index was flat.

Last seen, the Nifty Financial Services index was trading at 27,707.65, up 0.35%, while the Nifty PSU Bank was trading 0.68% higher at 8,313.05 levels.