RBI Monetary Policy | Rate-sensitive stocks trade mixed; banks gain, realty stocks extend fall

The Reserve Bank of India's Governor Shaktikanta Das announced the Monetary Policy Committee (MPC)'s decisions wherein the MPC has voted unanimously to leave repo rate unchanged at 4 percent while the stance has also been kept to "accomodative" for as long as needed, to support growth, the RBI Governor said.

Bank Nifty gained over half a percent led by ICICI Bank, Bandhan Bank, HDFC Bank, Axis Bank, IndusInd Bank, PNB and State Bank of India.

The auto index is trading flat with individual names trading on a mixed note.  The top gainers included Maruti Suzuki, Motherson Sumi Systems, Mahindra & Mahindra and Bharat Forge.

However, the realty index shed a percent dragged by DLF, Godrej Properties, Indiabulls Real Estate, Sobha, Sunteck Realty, Prestige Estates and Oberoi Realty.

The already languishing residential real estate demand is expected to plunge 50-70 percent on-year in the current fiscal, a CRISIL report has said. As a result, the credit profiles of small-to-mid-sized and leveraged developers will be impacted than larger, experienced developers with healthy balance sheets, it added.

"This policy should provide greater insights into the MPC's forward assessment with respect to the inflation and growth trajectories. The RBI may have to resort to more innovative and/or aggressive measures to ensure orderly absorption of government bond supply, without creating much dislocation in the bond markets. To comfort the Gilt markets, especially in the face of a burgeoning fiscal deficit, we would expect RBI to announce an OMO calendar," Unmesh Kulkarni, Managing Director, Senior Advisor at Julius Baer India told Moneycontrol.