RBI MPC Meeting April 2026: Rate-sensitive sectors like realty, auto, and banks rallied up to 7 per cent on April 8 after the Reserve Bank of India (RBI) governor Sanjay Malhotra announced no change in the repo rate or policy stance. He flagged rising inflation risks due to geopolitical tensions, even as India’s economic fundamentals remain strong.
The six-member Monetary Policy Committee (MPC) of the RBI voted unanimously to keep the repo rate unchanged at 5.25 per cent, and continue with its "neutral" policy stance.
The RBI MPC also kept the Standing Deposit Facility (SDF) at 5.00 per cent and the Marginal Standing Facility (MSF), along with the Bank Rate, at 5.50 per cent.
The Nifty Realty index jumped over 7 per cent, while the Nifty Auto index also rose by more than 7 per cent.
Among financials, Nifty Bank and Nifty Financial Services gained around 5–6 per cent. Nifty PSU Bank climbed more than 5.50 per cent, while Nifty Private Bank rose a little over 5 per cent.
Though RBI's decision was largely in-line with expectations, investors had also priced in the possibility of a rate hike. So, the decision removed that uncertainty, leading to a quick buying spree, especially after equities had witnessed considerable correction over the past few weeks due to the US-Iran war.
For sectors that depend on loans, like real estate and automobiles, stable rates keep EMIs affordable, supporting demand. Banks and financial services benefit too, as credit growth can continue without immediate pressure on margins.
Much of the relief rally came on the back of easing of geopolitical tensions in the West Asia after US President Donald Trump announced that he has agreed to “suspend the bombing and attack of Iran for a period of two weeks.”
The truce announcement triggered a relief rally in domestic equities as well as global stocks. On the other hand, it also cooled crude oil prices as supply risk concerns eased after Iran, as part of the deal, is set to reopen the Strait of Hormuz, a key shipping route which carries one-fifth of world's total global oil supply.
As of 11:40 AM, the international benchmark Brent crude oil futures was down 15 per cent at $92.85 a barrel, while the US benchmark West Texas intermediate (WTI) traded lower by 16 per cent at $94.82 per barrel.
This is a developing story...
