Indian stock markets swung between gains and losses on Wednesday as investors reacted to the Reserve Bank of India’s decision to keep interest rates unchanged. The cautious tone from policymakers weighed on rate-sensitive pockets, with realty, auto, and consumer stocks pulling the indices lower through the session.
The Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.5 per cent, following a total of 100 basis points in cuts across the last three policy meetings. The neutral policy stance was retained, with all six committee members voting in favour of a pause, signaling a wait-and-watch approach amid global uncertainty and signs of domestic resilience.
Following the policy announcement, rate-sensitive pockets slipped into the red. The Nifty Bank index, which had touched an intraday high of 55,507.20, lost steam and fell 0.5 per cent from its day’s peak.
Among major banking laggards after RBI policy announcement:
IndusInd Bank dropped 2.68 per cent to Rs 797.20, with a trading volume of 23.82 lakh shares, generating Rs 192.37 crore in turnover.
AU Small Finance Bank slipped 2.49 per cent to Rs 724.15.
IDFC First Bank fell 1.31 per cent to Rs 68.42, on strong volumes of 55.32 lakh shares.
Canara Bank edged down 0.77 per cent, and PNB also declined 0.68 per cent.
Real estate stocks were equally under pressure, with the Nifty Realty index ending as one of the session’s biggest sectoral losers, down over 2.3 per cent.
Key realty drags included:
Phoenix Mills, down 2.59 per cent at Rs 1,437.90
Godrej Properties, lower by 2.44 per cent
Brigade Enterprises, down 2.26 per cent
Prestige Estates, off 1.86 per cent
DLF, down 1.78 per cent at Rs 767.05
Governor Sanjay Malhotra, in his post-policy address, noted that India remains well-positioned against a volatile global backdrop and highlighted the success of earlier rate cuts in driving faster monetary transmission. “With frontloaded easing already in play, policy space is limited, but liquidity tools remain at our disposal,” he said.
Despite the pause, the central bank’s messaging was far from hawkish.