I had applied for Romanian visa but got rejected. I have this stamp in my passport. Is this a rejection stamp? What does this mean? Or do they do this on all applications?
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This stamp means that you applied for a visa.
Typically you would only see this stamp if you asked for your passport to be returned while the consulate processed your application. They would then ask you to return the passport to affix the visa after approval.
If your visa was approved, then it would be placed on the same page and would completely cover the stamp.
Because you didn't receive a visa, the stamp is visible, and it is possible to infer that your visa application was refused.