Auto, Realty and Bank Stocks Rise as RBI Cuts Repo Rate by 25 bps

The Reserve Bank of India’s Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 5.25%. The decision led to strong buying in sectors that benefit from lower interest rates.

Market Performance After the Rate Cut

By 10:25 AM, key sectoral indices were trading higher:

• Nifty Realty: +1%
• Nifty PSU Bank: +1%
• Nifty Auto, Nifty Bank & Nifty Financial Services: Up 0.30%–0.60%
• Nifty 50: Up 0.21%

SBI and Financial Stocks Lead the Gains

State Bank of India (SBI) was up 1.80% at ₹965.20, trading near the day’s high of ₹965.90. Other financial stocks also moved up to 2%, including:

• SBI Cards
• Shriram Finance
• Cholamandalam Investment
• Bajaj Finance
• Bajaj Finserv
• Muthoot Finance

Public sector banks like Indian Bank, PNB, Canara Bank, and Bank of India also gained between 1–2%. Real estate majors like DLF, Prestige Estates, and Oberoi Realty saw similar gains.

RBI’s Liquidity Measures

To support liquidity, the RBI announced:

• OMO purchase of government securities worth ₹1 trillion
• A 3-year USD/INR buy-sell swap worth $5 billion

These measures are aimed at injecting durable liquidity and stabilising financial conditions.

Also Read, Best Long-Term Stocks in Dec 2025!

Conclusion

The RBI’s 25 bps rate cut lifted sentiment across rate-sensitive sectors, especially real estate, autos, PSU banks, and financials. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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