Shares of rate sensitive sectors were trading mixed after the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decided to cut repo rate by 25 basis points to 6% from 6.25%.

While auto stocks gained up to 1%, real estate, banking and financial stocks fell up to 4%.

Among auto stocks, M&M, Bajaj Auto, Maruti Suzuki and Tata Motors were trading with gains.

On the other hand, banking and financial stocks saw declines, with Shriram Finance, Muthoot Finance, Bandhan Bank, and ICICI Bank are among the top losers from the Nifty Financial index, falling up to 2.38%.

The RBI outcome failed to spark strong gains for the benchmarks, the Nifty and Sensex.

The SDF rate and the MSF rate have also been adjusted by 25 basis points in response to the repo rate cut.

The decision was taken by the central bank’s MPC, who voted unanimously, in favour of a rate cut.

The RBI has also changed its stance to “accommodative” from its earlier stance of “neutral”. This decision was also taken unanimously by the MPC.

According to experts, a lower Consumer Price Index (CPI) inflation allows the RBI MPC to focus more on growth amid global uncertainties and paves way for another rate cut, which will further boost demand in the current scenario.

During its last meeting on February 7, 2025, the RBI MPC unanimously cut the policy repo rate by 25 basis points—from 6.5% to 6.25%—marking the first rate cut in nearly five years.

The repo rate is the interest rate at which the central bank lends short-term funds to commercial banks.