Tata Motors PV, Maruti Suzuki, Ashok Leyland, auto stocks drop up to 3% as RBI signals rate cuts are ‘off the table’

What happened: Auto stocks fell after the RBI Governor said rate cuts are off the table in the near term, with the Nifty Auto index down over 1%. Key numbers: Nifty Auto fell over 1%. Maruti Suzuki, Tata Motors PV, M&M and Hyundai declined over 2%. Ashok Leyland slipped more than 3%. Hero MotoCorp, TVS Motor and Bajaj Auto fell over 2%. Why it matters: The MPC said recalibrating the policy rate is imperative, citing a less benign inflation outlook and risks to CPI from strong GDP and credit growth. Higher rates weigh on auto demand and financing costs.

Auto stocks fell after the RBI Governor said rate cuts are off the table in the near term, with the Nifty Auto index down over 1%.

The MPC said recalibrating the policy rate is imperative, citing a less benign inflation outlook and risks to CPI from strong GDP and credit growth. Higher rates weigh on auto demand and financing costs.