Auto stocks firm as RBI cuts repo rate by 25 bps; banking stocks trade flat

Ashok Leyland, TVS Motor, Bajaj Auto, Apollo Tyres, Motherson Sumi Systems, Tata Motors, Hero MotoCorp and M&M were up between 2% and 5% on the NSE.

Shares of automobile companies were trading higher by up to 5 per cent on the National Stock Exchange (NSE), after the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) in its sixth bi-monthly monetary policy meeting on Thursday cut the repo rate by 25 bps to 6.25 per cent from 6.50 per cent, earlier.

The MPC also changed its stance to 'neutral' from the 'calibrated tightening' adopted in October meet last year.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within