Real estate stocks traded lower on Wednesday ahead of the Reserve Bank of India's monetary policy decision, with investors awaiting cues on the interest-rate outlook.

Reserve Bank of India (RBI) is likely to keep benchmark interest rates unchanged at this week's Monetary Policy Committee (MPC) meeting, despite growing inflationary risks, a weakening rupee and elevated Brent crude oil prices.

The Nifty Realty index declined 1.87 per cent to 758.90, after touching an intraday high of 773.70 and a low of 753.80, against its previous close of 773.35.

Among the constituents, Prestige Estates Projects was the worst performer, falling 3.71 per cent to Rs 1,343.20. Macrotech Developers (Lodha) slipped 3.04 per cent to Rs 876.30, while DLF declined 2.25 per cent to Rs 578.55.

Godrej Properties fell 1.55 per cent to Rs 1,693.90 and Anant Raj was down 1.33 per cent at Rs 544.85.

Among actively traded counters, DLF saw volume of 22.02 lakh shares, followed by Anant Raj with 20.37 lakh shares and Lodha with 14.04 lakh shares on the NSE.