Interest-rate sensitive stocks trade weak; Realty top loser

Interest-rate sensitive stocks traded weak, with the realty gauge emerging as the top loser after the Reserve Bank of India (RBI) on expected lines on a unanimous basis decided to reduce repo rate by 25 basis point to 6 per cent with immediate effect.

Also, the apex lender decided to change the stance from the previous 'neutral' to 'accommodative'.

At the last count, realty index was the worst performer in trade today, with the gauge down as much as 1.5 per cent.

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The drag in the real estate pack comes even as experts hail the move as a cut in repo rate would result in softening of the borrowing cost and hence boost overall demand.

Adil Altaf, Managing Director, Trinity says, The RBI MPC's decision to change the repo rate by 25 bps, to 6 per cent is a welcoming news. For the real estate industry, it will ensure lower home loan EMIs, leading to a boost in buyer confidence. We expect a growing interest from first- time home buyers in the luxury segment, which sits well with the overall outlook for the real estate industry."

Nonetheless, the auto pack showed confidence, with the Nifty Auto trading marginally higher at around 10:38 am.