Rate sensitives' display mixed trend after RBI hikes repo rate by 25 bps

At 11:00 am; Nifty Bank, Nifty Private Bank, Nifty PSU Bank and Nifty Financial Services are trading almost flat, as against 0.58% rise in Nifty 50.

Shares of rate sensitive sectors like banking, automobiles and realty traded mixed on Wednesday after the Reserve Bank of India (RBI) governor Shaktikanta Das announced a repo rate hike of 25 basis points (bps), thus taking the key benchmark interest rate to 6.5 per cent.

The Monetary Policy Committee (MPC's) decision was split 4-2. This is the first rate hike in 2023. Before this, the repo rate was hiked by 35 bps on December 7, 2022.

The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while