Rate Sensitive Stocks

Among sectoral indices, Nifty Realty led the rally with gains of nearly 2%. The Nifty Financial Services index advanced 1.3%, while Nifty Bank climbed 1% and Nifty Auto added 0.8%.

The RBI maintained the repo rate at 5.25%, boosting interest rate-sensitive sectors. Indian stock markets surged over 3.5% following a US-Iran ceasefire and falling crude prices. The RBI projected GDP growth at 6.9% for FY27, supporting market resilience and financial stocks.

The RBI's MPC cut the repo rate to 5.25% amid low inflation at 2.2%. The central bank raised FY26 GDP growth estimate to 7.3% and reduced CPI inflation to 2%. Following the announcement, Indian stocks gained, with the Nifty Bank index and other rate-sensitive sectors reacting positively.

The RBI Monetary Policy Committee, led by Governor Sanjay Malhotra, maintained repo rates at 5.5%. Following this, the BSE Sensex dropped 165 points. Retail inflation is expected to rise, while GDP growth is retained at 6.5% for the current financial year.

RBI Governor Sanjay Malhotra's shift in policy stance, along with his statement that the RBI MPC will now carefully assess income data and the evolving economic outlook before deciding on further action, signals a possible pause in rate cuts.

Indian stock markets experienced a sell-off on April 9 despite a 25 basis point rate cut by the RBI. Rate-sensitive sectors, including banking and realty, underperformed amid global economic uncertainties, with the Sensex dropping 554 points and Nifty 179 points during the session.