With status quo on repo rate, the MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.
The Indian stock market, including the Sensex and Nifty have edged higher after the Reserve Bank of India maintained status quo and maintained an accomodative stance.
Sensex is up 138.33 points or 0.34 percent at 41280.99, and the Nifty added 43.20 points at 12132.40.
The reverse repo rate has been unchanged at 4.9 percent, while the bank rate is at 5.4 percent and FY21 GDP growth is seen at 6 percent, the RBI said.
With status quo on repo rate, the MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.
Rate sensitive stocks are trading in the green with the banking index trading half a percent higher. Among the gainers, Axis Bank, YES Bank, Punjab National Bank, IDFC First Bank, Bank of Baroda and RBL Bank are trading in the green.
The realty index added a percent with the top gainers being Sobha, Oberoi Realty, Phoenix Mills, Brigade Enterprises, Godrej Properties and Indiabulls Real Estate.
From the auto space, Tata Motors Motherson Sumi Systems and TVS Motor added 2-3 percent while Bharat Foreg and Bosch are the other gainers.
In an interview to CNBC-TV18, Keki Mistry, Chairman at HDFC said, "We welcome RBI's move on extension of the timeline for commercial realty loans adding that the steps taken by RBI will boost GDP growth. Banks will now be incentivised to lend to MSMEs, he said.Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.
