RBI Policy: Rate-sensitive banking, NBFC, auto and realty stocks gain up to 2% after 25 bps repo rate cut

Monetary Policy Impact - The Reserve Bank of India (RBI) has lowered the repo rate by a cumulative 125 basis points since February, now standing at 5.25% after a recent cut of 25 basis points [1][6] - The MPC's decision was made after assessing macroeconomic conditions, and the rate was kept unchanged in August and October [4][6] Market Reactions - Following the policy announcement, the Nifty Bank index rose by 0.6% to 59,658.65, Nifty Auto advanced 0.4% to 27,850.25, and Nifty Realty gained 1% to 899.05 [1][6] - Financial stocks increased by up to 1.5%, with notable gains from AU Small Finance Bank, Kotak Mahindra Bank, and IDFC First Bank [6][7] - Realty stocks such as Brigade Enterprises, Prestige Estates Projects, and DLF rose between 1% and 2% [6][7] - Auto stocks including Maruti Suzuki, Eicher Motors, and Mahindra & Mahindra gained up to 1% [6][7] Economic Outlook - Dr. Ravi Singh from Master Capital Services stated that the RBI's rate cut is a growth-oriented move supported by a soft inflation backdrop, with core CPI expected near 2% [5][6] - The liquidity measures from the central bank are expected to lower funding costs and improve credit transmission, benefiting rate-sensitive sectors [5][7] - The policy is seen as constructive for sectors like Banks, NBFCs, Autos, and Real Estate, which are anticipated to benefit from improved demand and earnings visibility [5][7]