Post-RBI's 25 bps repo cut to 5.25%, Nifty Financial Services surged 0.65%, Realty extended gains to 1.4%, and PSU Banks climbed 1%. Rate-sensitive sectors rally on lower borrowing costs, liquidity boost amid Goldilocks economy cheers.
Sector Surge Explained
Nifty Financial Services (.NIFTYFIN) jumped 0.65% as private banks like HDFC Bank, ICICI led gains, benefiting from improved transmission and NIM expansion prospects. Realty (.NIFTYREAL) extended momentum +1.4% with DLF, Godrej Properties soaring on cheaper home loans outlook. PSU Banks (.NIFTYPSU) rose 1%, SBI, PNB gaining from deposit mobilization tailwinds. Broader Nifty held +0.3% at ~26,080.
Rate Cut Catalyst
Governor Malhotra's unanimous 25 bps easing to 5.25% triggered the sectoral rotation, rewarding rate-sensitives after 4-day consolidation. Disinflation progress and banking consolidation underpin rally; geopolitics noted as risks. Auto, infra likely follow; FII stance key.
Key Highlights
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Nifty Financial Services: +0.65% (HDFC, ICICI lead).
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Nifty Realty: +1.4% (DLF, Godrej shine).
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Nifty PSU Bank: +1% (SBI, PNB strong).
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Context: Post-25 bps repo cut to 5.25%; unanimous MPC.
Sources: Moneycontrol Live Updates