After three successive interest rate cuts since February, 2025, which reduced repo rate by 100 bps, the Reserve Bank of India (RBI) on Wednesday decided to keep policy rate unchanged at 5.5 per cent while it watched tariff uncertainties grow between India and the US.
This decision affected the stock markets on Wednesday as interest rate-sensitive auto, realty and bank stocks declined 5 per cent and the 30-share BSE Sensex fell 80.99 points or 0.10 per cent to 80,629.26 in mid-session trade.
The RBI policymakers said they would prefer to weigh the risks posed by US President Donald Trump's trade policies.
Also Read: GDP for FY26 at 6.5 pc; inflation lower at 3.1 pc: RBI
The scrip of Bosch declined 4.85 per cent to trade at ₹38,617.75, Hyundai Motor India fell 1.95 per cent to ₹2,146.15, HeroMoto Corp depreciated 1.31 per cent to ₹4,482.60, Apollo Tyres diminished 1.07 per cent to ₹435.10, and Mahindra & Mahindra dipped 0.83 per cent to ₹3,183.50 on the BSE.
Also, Ashok Leyland shares slipped 0.78 per cent to ₹120.95, TVS Motor Company fell 0.67 per cent to trade at ₹2,962.75, Tata Motors 0.57 per cent to ₹650.90, and Maruti Suzuki India went lower 0.04 per cent to ₹12,520.
However, Bajaj Auto rose 0.11 per cent to trade at ₹8,239.35 and Eicher Motors went up 0.03 per cent to ₹5,681.80 per piece on the exchange.
The BSE Auto index declined 0.85 per cent to 52,907.31.
From the realty pack, Prestige Estates Projects decreased 2.68 per cent to trade at ₹1,566.20, DLF fell 2.65 per cent to ₹760.05, Godrej Properties dipped 2.42 per cent to ₹2,063.55, the Phoenix Mills slipped 2.40 per cent to ₹1,439.65, and Brigade Enterprises fell 2.27 per cent to ₹969.70.
Anant Raj shares also depreciated 2.03 per cent to ₹548.50, Lodha Developers fell 1.54 per cent to trade at ₹1,214.60, Oberoi Realty slipped 1.37 per cent to ₹1,586, Signature Global dipped 1.38 per cent to ₹1,127.05 and Sobha Ltd went lower by 1.12 per cent to ₹1,576.85 apiece on the bourse.
The BSE Realty index decreased 2.11 per cent to 6,901.55.
The banking stocks were also trading in the red territory, with IndusInd Bank declining by 2.58 per cent to trade at ₹798.10 per share, IDFC First Bank dropped 1.34 per cent to ₹68.41, Bank of Baroda fell 0.46 per cent to ₹239.55, Axis Bank dipped 0.16 per cent to ₹1,068.85 and State Bank of India by went lower by 0.02 per cent to ₹800.50.
On the other hand, ICICI Bank rose 0.22 per cent to trade at ₹1,447.50 and HDFC Bank up 0.18 per cent to ₹1,980.10.
The BSE Bankex went lower 0.04 per cent to 61,597.35.
From the Financial Services pack, SBI Cards and Payment Services shares fell 2.16 per cent to trade at ₹786.90, Jio Financial Services dropped 1.98 per cent to ₹326.20, Bajaj Finance slipped 1.78 per cent to ₹875.60, Bajaj Finserv dipped 1.16 per cent to ₹1,916.95, and LIC Housing Finance went down 0.49 per cent to ₹576.50 apiece on the BSE.
The BSE Financial Services index decreased 0.06 per cent to 12,431.42.
In its third bi-monthly monetary policy meeting of the current fiscal, RBI Governor Sanjay Malhotra said that the growth rate projection for FY26 has been retained at 6.5 per cent.
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