Rate sensitives shine: Realty up 3%, NSE Auto hits new peak on rate pause

Among interest rate sensitives, Exide, Uno Minda, Bosch, Tata Motors CV, Ashok Leyland, Godrej Properties, DLF and Lodha Developers gained 3-5% in Wednesday's intra-day trade post RBI policy.

Shares of rate-sensitive sectors were in demand with the Nifty Auto index hitting a new high, and Nifty Realty surging 2.5 per cent on the National Stock Exchange (NSE) in Wednesday’s intra-day deals post the RBI policy announcement.

 

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25 per cent on Wednesday. The standing deposit facility (SDF) rate was kept at 5 per cent. The marginal standing facility (MSF) rate and the bank rate were both set at 5.5 per cent.

 

The RBI Governor Sanjay Malhotra said underlying inflation has stayed under control for some time and is likely to converge with overall core inflation by the end of the current financial year. READ MORE  "As widely expected, the MPC unanimously decided to hold the repo rate unchanged at 5.25 per cent and retain the neutral stance. The slight surprise element was the upward revision in GDP growth for FY27 to 6.7 per cent from 6.6 per cent earlier and the downward revision in CPI inflation for FY27 to 5 per cent from 5.1 per cent earlier," said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.  The analyst reckons that the overall policy is optimistic about the emerging growth-inflation dynamics even amidst what the Governor called ‘persistent global uncertainty.’ The policy is positive for stock markets. Bond yields are stable, Vijayakumar added. 

 

Nifty Auto index hit a record high of 29,389.30, gaining 1.2 per cent on the NSE in intra-day trade. The auto index surpassed its previous high of 29,179.10 touched on January 5, 2026.

 

Exide Industries, Uno Minda, Bosch, Tube Investments of India, Tata Motors Commercial Vehicles, Ashok Leyland, Hero MotoCorp, Samvardhana Motherson International, TVS Motor Company and Sona BLW Precision Forgings were up in the range of 2 per cent to 4.5 per cent.  The RBI's decision to hold rates at 5.25 percent can be seen as a confident stance. The RBI Governor is managing two variables at once: a West Asia conflict that keeps crude prices and global risk sentiment on edge, and a rupee that has recently shown some sturdiness against geopolitical risks, holding in the 94 to 96 band against the dollar. That combination gives the MPC room to stay still rather than react to every headline, or every social media post, out of the region, says Sachin Sawrikar, Managing Partner, Artha Bharat Investment Managers IFSC LLP.  "For Indian markets, the bigger issue over the next few months isn't the repo rate, it's how much more geopolitical pressure the rupee can take before the central bank has to step in hardly," adds Sawrikar. 

Meanwhile, the Nifty Realty index surged 3 per cent to 915.10 in intra-day deals. Share price of Godrej Properties soared 5 per cent, while, DLF, Prestige Estates Projects, Lodha Developers and Oberoi Realty were up 3 per cent each.

 

Nifty PSU Bank index was up 1.4 per cent to 8,597.85 on the NSE in intra-day deal. Bank of Maharashtra, Union Bank of India, Bank of Baroda, Indian Bank, Bank of India, Canara Bank and Uco Bank were up in the range of 1 per cent to 2 per cent.

 

However, the Nifty Private Bank index was down 0.31 per cent, with Federal Bank, Axis Bank and HDFC Bank from the index down by up to 1 per cent.

 

RBI Governor said growth continues to be supported by resilient domestic demand, sustained expansion in manufacturing and services activity, and robust exports, reaffirming India’s position as the world's fastest-growing major economy.

 

“The Indian economy has remained resilient amidst persisting global headwinds. High-frequency indicators available so far point towards steady domestic demand in Q1:2026-27. Private consumption remained robust. Investment continues to be resilient, as suggested by various indicators related to construction, capital goods and bank credit. External demand also sustained, as healthy expansion in services exports was complemented by a rebound in merchandise exports,” RBI said in its monetary policy statement, 2026-27.

 

The unchanged policy rate is a welcome signal of stability amid the ongoing macroeconomic uncertainty, but it is not enough to reignite the mass-market housing cycle, said Anuj Puri, Chairman - ANAROCK Group.

 

Affordable housing demand remains very rate-sensitive, and with average residential prices still growing at 7 per cent annually across the top cities, rate steadiness alone will do little to improve affordability, added Anuj Puri.  ===================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.