Summary of this article
RBI keeps repo rate unchanged at 5.5 per cent.
Banks, NBFCs, Realty, and Auto sectors fell.
RBI kept its GDP growth forecast unchanged at 6.5 per cent for FY26.
RBI also cut its inflation forecast for FY26 to 3.1 per cent from 3.7 per cent earlier.
The Reserve Bank of India (RBI) Governor Sanjay Malhotra on August 6 announced that the Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 5.5 per cent. The central bank also retained its monetary policy stance as ‘Neutral’ in the August 2025 review.
Following the announcement, rate-sensitive sectors such as banks, non-banking financial services, realty and automobile witnessed immediate selling pressure, as unchanged rates dampened hopes of cheaper loans.
RBI Governor Malhotra said, “The domestic growth is holding up and is broadly revolving around the lines of our assessment. Even though there were some high-frequency indicators that showed missed signals in May this year. Rural consumption remains resilient while urban consumption revives. Fixed investment supported by buoyant government capex continues to support economic activity.”
At the time of writing, the Nifty Realty index fell as much as 2.25 per cent so far during the session. The Nifty Auto index slipped up to 0.90 per cent, while the Nifty Bank index remained relatively stable, however, in the red zone nonetheless, down by 0.21 per cent. The Nifty Financial Services index also fell up to 0.32 per cent.
Realty, Auto Decline The Most
Dragging the realty index the most was Prestige Estate Projects, which fell over 4 per cent, followed by DLF and Phoenix Mills, which declined between 2 per cent and 3 per cent each. Godrej Properties, Lodha Developers, Brigade Enterprises, Sobha and Oberoi Realty too fell in the range 0.5 per cent to 2 per cent. All the constituents of the oindex were trading in the red.
Among the auto index constituents, Bosch and Balkrishna Industries fell up to 5 per cent and 4 per cent, respectively, so far during the session. Hero MotoCorp, Samvardhana Motherson International, TVS Motor Company, Bharat Forge, Ashok Leyland and Mahindra & Mahindra also fell mor than 1 per cent. Most of the constituents of the auto index were in the red.
RBI Monetary Policy: GDP, Inflation Forecast
The RBI kept its gross domestic product (GDP) growth forecast unchanged at 6.5 per cent for FY26 and expects 6.6 per cent growth in Q1 FY27. It also cut its inflation forecast for FY26 to 3.1 per cent from 3.7 per cent earlier.
Quarterly projections stand at 2.1 per cent for Q2, down from 3.4 per cent earlier; 3.1 per cent for Q3, down from 3.9 per cent, 4.4 per cent for Q4, unchanged; and 4.9 per cent for Q1 FY27.
