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India shares climb as RBI holds rates, Nifty Realty surges over 2.5%

The RBI kept the repo rate at 5.25% and raised its FY27 GDP growth forecast to 6.7%, while trimming its FY27 CPI inflation projection to 5.0%.

Reported · Written up by our desk · North America

Rate-sensitive stocks rose on Wednesday after India’s central bank kept policy rates unchanged, lifting sectors that typically benefit from steadier borrowing conditions. On the National Stock Exchange, the Nifty Auto index hit a fresh record high, while Nifty Realty jumped more than 2.5% intraday, according to LiveMint Markets.

The broader market showed divergence, with the Sensex gaining more than 600 points, about 1%, while the Nifty 50 slipped 0.20% for the third consecutive session. LiveMint Markets reported that the moves came after the Reserve Bank of India’s Monetary Policy Committee decision.

The RBI maintained the repo rate at 5.25%, retained the Standing Deposit Facility rate at 5%, and kept the Marginal Standing Facility and bank rates unchanged at 5.5%. The central bank also said underlying inflation has been under control and is expected to converge with headline inflation by the end of the current financial year.

In its outlook, the RBI revised its FY27 GDP growth forecast upward to 6.7% from 6.6% and lowered its FY27 CPI inflation projection to 5.0% from 5.1%. LiveMint Markets cited V K Vijayakumar of Geojit Investments, who pointed to the GDP growth upgrade and CPI forecast reduction as the main surprise elements in the decision.

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