MUMBAI: Stocks of realty firms slipped as much as 4 per cent on the Bombay Stock Exchange (BSE) after the Reserve Bank hiked key interest rates to tame inflationary concerns, a move that could make home loans dearer.

Realty firm Unitech slipped to Rs 70.55, down 4.27 per cent and country's largest realty player DLF fell 3.53 per cent to Rs 301.65 on the BSE in the early morning trade.

Realty index on BSE which comprises 14 realestate stocks slipped 2.59 per cent to a low of 3,254.26 points.

"Realestate sector is rate sensitive, rate hike by the Reserve Bank of India will make home loan costly for the common man in turn affecting the product of the realty estate firms as their will be less buyers," SMC Capital Vice-President Rajesh Jain said.

Other stocks who were under pressure are -- Indiabulls Real Estate (down 3.03 per cent), HDIL (2.06 per cent), Ackruti City (1.16 per cent) and Sobha Developers (0.84 per cent).

On Friday, the RBI hiked the short-term rates at which it borrows and lends funds to banks by 25 basis points each, adopting a tight money policy.

The Central bank raised the repo( rate at which it lends to banks) and the reverse repo rates (the interest it pays to the banks on deposits) by 25 basis points each to 5 per and 3.5 per cent, respectively.