Banking and other interest-rate-sensitive sectors, including NBFCs, realty and automobiles, came under sharp selling pressure on Wednesday after the Reserve Bank of India raised the repo rate by 25 basis points to 5.50% and shifted its policy stance to ‘calibrated tightening’. This marked the first rate hike in nearly 4 years.
The Nifty Auto index declined more than 1% in the session, with major constituents including Maruti Suzuki, Tata Motors PV, M&M and Hyundai falling over 1% each. The Nifty Bank index slipped nearly 1%, down 0.70%.
