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HomeMarket NewsRBI Policy Impact: Real Estate, Banking stocks gain after 25 bps rate cut
Auto stocks rose up to 1%, while real estate as well as banking and financial names gained up to 2%. In the auto pack, Maruti Suzuki, Eicher Motors and M&M were among the top gainers.
By CNBCTV18.com December 5, 2025, 10:18:02 AM IST (Published)
Shares of rate-sensitive sectors traded higher on Friday, December 5, after the Reserve Bank of India’s Monetary Policy Committee cut the repo rate by 25 basis points to 5.25%.
Auto stocks rose up to 1%, while real estate as well as banking and financial names gained up to 2%. In the auto pack, Maruti Suzuki, Eicher Motors and M&M were among the top gainers.
Banking and financial stocks such as Indian Bank, PNB and SBI also advanced, and realty counters including Prestige, DLF and Oberoi Realty traded firm.
The RBI had kept policy rates unchanged in its previous two meetings in August and October. Before that, the MPC had delivered a cumulative 100 basis point reduction across its February, April and June reviews.
The latest rate cut was a unanimous decision, with the policy stance retained as “neutral.” To address current liquidity conditions, the central bank also announced Open Market Operations of ₹1 lakh crore. OMOs involve the RBI buying or selling government securities in the open market to manage liquidity and regulate money supply.
