On December 6, rate-sensitive stocks had a mixed performance after the Reserve Bank of India (RBI) decided to reduce the cash reserve ratio (CRR) by 50 basis points to 4 percent.

This move was aimed at addressing concerns about growth and resulted in a 0.3 percent increase in the Nifty Bank and Auto indices. However, the Nifty Realty index declined by 0.6 percent.

The RBI's Monetary Policy Committee kept the repo rate at 6.5 percent, as expected by the market, and maintained a "neutral" policy stance.

The CRR reduction, the second in four years, is expected to inject around Rs 1.6 lakh crore into the banking system, implemented in two tranches of 25 basis points each. The previous CRR cut took place in March 2020 to enhance liquidity during the pandemic.