How RBI MPC 25 bps outcome impacted rate-sensitive sectors, Nifty Bank, Financial Services, Nifty Auto? Where to invest?

What happened: The RBI MPC unanimously raised the repo rate by 25 bps to 5.50% from 5.25%, its first hike in four years, and changed its stance to calibrated tightening. Rate-sensitive sectors closed mixed. Key numbers: Repo rate 5.50%, up 25 bps. FY27 real GDP growth forecast raised 40 bps to 7.1%. Why it matters: Analysts said the easy valuation tailwind from lower rates is fading, favouring large private banks and companies with pricing power, clean balance sheets and low reliance on external funding over leveraged, rate-sensitive businesses.

The RBI MPC unanimously raised the repo rate by 25 bps to 5.50% from 5.25%, its first hike in four years, and changed its stance to calibrated tightening. Rate-sensitive sectors closed mixed.

Analysts said the easy valuation tailwind from lower rates is fading, favouring large private banks and companies with pricing power, clean balance sheets and low reliance on external funding over leveraged, rate-sensitive businesses.