Rate sensitive shares trade firm after RBI hikes repo rate by 50 bps

Shares of rate sensitive sectors such as automobiles, realty and financials including banks, non banking finance companies (NBFCs) and housing finance companies had gained up to 3 per cent on the National Stock Exchange (NSE), after the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday raised the repo rate by 50 basis points to 4.9 per cent (bps), which was more or less on expected lines.

Meanwhile, the MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.

These decisions