Market trade flat; rate-sensitive stocks in focus ahead of RBI MPC rate decision
Published on 06/08/2025 09:49 AM
The benchmark indices Sensex and Nifty opened on a flat note on Tuesday as investors await the crucial RBI Monetary Policy Committee (MPC) outcome scheduled at 10 AM. The focus remains sharply on rate-sensitive sectors, auto, financials, and realty, as the Sanjay Malhotra-led MPC panel decides on interest rates.
As of 9:30 AM, 1,169 stocks were trading in the green, while 854 were in the red, with 115 unchanged, reflecting a broadly positive but cautious sentiment across Dalal Street.
Despite being in focus, the Nifty Auto index was trading weak, falling 119.15 points or 0.50 per cent to 23,757.15. Stocks like Tata Motors, M&M, and Hero MotoCorp were among the laggards. Analysts believe that investors are booking profits ahead of the policy announcement amid a lack of fresh cues.
The Nifty Financial Services index edged up 0.07 per cent to 26,392.55. Stocks like HDFC Bank, ICICI Bank, and Bajaj Finance showed subdued movement. Market participants are closely watching whether the RBI offers any dovish commentary that could boost credit growth and improve sectoral liquidity.
The Nifty Realty index was among the worst performers, falling 0.96 per cent to 899.15. Sector majors like DLF, Godrej Properties, and Oberoi Realty saw selling pressure in early trade.
Most economists expect the RBI to hold rates steady, maintaining the repo rate at 6.50 per cent amid sticky inflation and global uncertainty. However, a section of the market is speculating on a 25 basis point rate cut, which if materialised, would be the first policy pivot under Governor Sanjay Malhotra.
A dovish surprise could ignite a sharp rally in interest rate-sensitive sectors, especially NBFCs, affordable housing players, and passenger vehicle makers.
Among individual stocks, Bharat Electronics Ltd (BEL) was among the top Nifty gainers in early trade, gaining over 2 per cent. The counter remains in strong momentum, riding on recent defence deal wins and robust quarterly guidance.
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