RBI MPC policy meet: Rate-sensitive stocks trade lower after RBI keeps repo rate unchanged

RBI MPC Policy meet: Rate-sensitive stocks were trading in the red zone after RBI Governor Shaktikanta Das announced that the monetary policy committee (MPC) of the Reserve Bank of India (RBI) unanimously decided to keep the repo rate unchanged at 6.50 per cent in the second bi-monthly monetary policy of the current fiscal (FY23–24).

At the time of writing this news, all rate-sensitive stocks were trading lower, between 0.03 and 0.56 per cent.

Rate-sensitive stocks are shares of those companies that see their market value fluctuate with changes in interest rates.

The Nifty Bank was down half a per cent at 44,652.7. Barring IndusInd Bank, all the bank stocks were trading lower between 0.41 per cent to 1.39 per cent. Nifty Financial Services was down 0.69 per cent, followed by Nifty Consumer Durables down by 0.56 per cent and Nifty Auto declined by 0.20 per cent.

Even Nifty Realty slipped and traded flat. Among the 10 realty stocks, five stocks traded in the red, with Phoenix Mills as the top gainer on the index and Prestige Estate as the top laggard.

The six-member monetary policy committee (MPC) of the RBI continued with the status quo on the policy repo rate.

The MPC meeting, which took place from August 8 to August 10, has also retained the 'withdrawal of accommodation' policy stance.

The repo rate is the interest rate at which banks borrow funds from the Reserve Bank of India (RBI) to overcome short-term liquidity mismatches.

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