Rate-Sensitive Stocks Rally as RBI Holds Interest Rates Steady

In a significant market movement, rate-sensitive stocks, including banks, autos, and real estate, rallied as the Reserve Bank of India chose to maintain its key interest rates. This decision comes amidst uncertainty regarding the impact of US tariffs and in anticipation of future economic changes.

RBI Governor Sanjay Malhotra hinted at potential easing in the coming months, aiming to support the economy against any adverse effects of the US tariffs. This optimism drove a surge in banking stocks, with notable gains seen in Kotak Mahindra Bank, Axis Bank, and others.

The RBI's unchanged rate, alongside expectations of economic growth and steady liquidity, lifted investor sentiment, propelling markets upward. The Indian equity market witnessed a broad-based rally, reflecting investor confidence in steady policy and improved growth forecasts.

(With inputs from agencies.)