Rate-sensitive stocks rally ahead of RBI policy; Nifty Realty, Auto lead gains

Rate-sensitive sectors saw strong buying in early trade on Wednesday as equity markets largely priced in a status quo on policy rates ahead of the Reserve Bank of India’s Monetary Policy Committee decision due at 10 AM today.

Investors appeared to be positioning for no change in the benchmark repo rate, currently at 5.25 per cent, which was last revised in December 2025 when the central bank delivered a rate cut.

Realty, auto and financials surge

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Among sectoral indices, rate-sensitive pockets outperformed sharply, reflecting optimism around stable borrowing costs and demand outlook.

Nifty Realty index rose 5.65 per cent to 738.05, emerging as the top gainer. The sharp move indicates improved sentiment in housing demand and developer balance sheets, which are closely linked to interest rate cycles.

Nifty Auto index gained 4.78 per cent to 25,538.55. Auto stocks typically benefit from stable or lower interest rates, as financing costs for consumers remain manageable.

Nifty Financial Services index advanced 4.47 per cent to 25,788.85, supported by strength in banks and NBFCs. Stable rates tend to support credit growth visibility and asset quality expectations.

The Nifty Consumer Durables index also moved higher, rising 3.93 per cent to 35,488.45, as easing rate concerns improve discretionary demand outlook.