No fireworks in RBI policy see auto, realty, FMCG stocks cooling off; banks trade steady

After the Reserve Bank of India decided to maintain its policy rates, banking stocks remained stable while stocks in rate-sensitive sectors such as automobiles and real estate faced profit booking. The reaction of the stock market was expected, with investors predicting no major surprises in the policy statement. Although the RBI Governor highlighted macroeconomic improvements, concerns about monsoon season and the potential impact of El-Nino conditions still linger. The central bank maintained a GDP growth forecast for FY24 of 6.5%.