Mumbai, Oct. 7 -- Consumption-focused sectors bore the brunt of the Reserve Bank of India's (RBI) monetary tightening on Wednesday, with auto, consumer durables and realty stocks facing selling pressure as investors interpreted the policy move as the start of a higher borrowing-cost cycle.

A higher repo rate eventually leads to higher equated monthly instalments (EMIs) or extended loan tenures on cars, homes, electronic goods and other big-ticket purchases, squeezing affordability, particularly for price-sensitive customers. Combined with weaker rural purchasing power amid a patchy monsoon and elevated food inflation, it could weigh on financed big-ticket purchases this festive season, said Ajitabh Bharti, co-founder of CapitalXB, a non-...