RBI Holds Repo Rate at 5.50%; Nifty Slips Below 24,600 as IT, Realty Stocks Tumble

Mumbai(The Uttam Hindu): The Reserve Bank of India (RBI) decided on Wednesday to keep the repo rate unchanged at 5.50%, a move that led to a modest decline in benchmark indices. The Nifty 50 fell below its crucial resistance level of 24,600, trading at 24,556.20 (down 0.38%) at 11:34 AM, while the Sensex dipped 0.27% to 80,492.96.

Ahead of the Monetary Policy Committee (MPC) announcement, both Nifty and Sensex were slightly down by 0.08% and 0.07%, respectively. Market experts say the RBI decision was largely expected, and the bigger driver for sentiment may be U.S. President Donald Trump's new tariff announcements, adding to global market uncertainties.

Sectoral Impact:

Nifty IT index saw a sharp 1.57% fall in morning trade, with Coforge leading the losses at -3.49%. Other major IT stocks also declined by 1–2%.

Nifty Pharma dropped 1.26%, while Nifty Realty recorded a steeper 2.26% loss.

RBI Governor Shaktikanta Das stated that while headline inflation is significantly low, volatility in vegetable prices remains a concern. However, core inflation has remained stable around 4%.

Despite global headwinds, the RBI maintained its GDP growth forecast for FY 2025–26 at 6.5%, citing improved rural demand, aided by a normal monsoon and increased government spending on large infrastructure projects. In terms of inflation, the central bank estimated Consumer Price Index (CPI)-based inflation to average around 3.1% for FY 2025–26, expecting stable food prices supported by good kharif sowing and a consistent monsoon pattern.