Bank, auto, realty stocks trade lower despite 25 bps repo rate cut by RBI

IndusInd Bank, IDFC First Bank, Bank of Baroda, Syndicate Bank, Allahabad Bank, Union Bank of India, Bank of India and YES Bank were down 3 to 5 per cent.

Shares of interest rate sensitive sectors such as automobiles, real estate, and banking were trading weak despite the monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Thursday reducing the repo rate by 25 basis points (bps) from 6 per cent to 5.75 per cent in the second bi-monthly monetary policy meet of the financial year 2019-20 (FY20). The policy stance was also changed to 'accommodative' from 'neutral'.

It was a third straight interest rate cut by the RBI so far in 2019. Repo rate is the rate at which the RBI lends money to the commercial