RBI Repo Rate Hike: Bank, NBFC, Realty Stocks Pare Early Losses After 25 bps Hike

RBI Repo Rate Hike: Banking and other rate-sensitive sectors saw a sharp reversal on October 7 after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.50 per cent and changed its policy stance to ‘calibrated tightening’.

At 10:25 AM, the Nifty Bank, which had fallen nearly 1 per cent in early trade, was up around 0.20 per cent. Kotak Mahindra Bank, Canara Bank and Punjab National Bank were among the key gainers.

The Nifty Financial Services index, which has significant exposure to NBFCs, also recovered from early losses and moved into positive territory after the RBI policy announcement.

Realty stocks saw a similar reversal. The Nifty Realty index, which was down around 1 per cent earlier, had narrowed its losses to about 0.20 per cent. The Nifty Auto index also recovered from its early lows but remained under pressure, down nearly 1 per cent.

This is a developing story...