Banks, autos, realty stocks stuck in a range ahead of RBI policy review

NEW DELHI: Shares in rate sensitive sectors such as banks, realty, auto and capital goods were trading in a rage on Tuesday, ahead of the Reserve Bank of India ( RBI) policy monetary meet due later today.

A majority of bankers expect the RBI to keep interest rates unchanged, says ET Now poll. Any dovish commentary would lead to further spike in the market.

According to ET Now poll, 80% of poll participants says that RBI will not cut rates on Tuesday, while 20% bankers are predicting a 25 basis points repo rate cut.

Interesting, as much as 40% poll participants see the RBI cutting repo rate by 1% by the end of 2015. 60% are predicting a 75 basis points cut in the current calendar year.

At 09:50 a.m.; BSE Banking index was trading 0.25 per cent lower, the BSE Realty index was trading 0.65 per cent lower, BSE capital goods index was trading flat and BSE auto index was up 0.38 per cent.

Among the banking names HDFC Bank (down 0.92 per cent) was the top loser, followed by Kotak Bank (down 0.68per cent), Axis Bank (down 0.61 per cent), and Canara Bank (down 0.10 per cent).

The BSE Realty index was trading 0.65 per cent lower led by losses in Anant Raj Industries (down 1.6 per cent), HDIL (down 1.5 per cent), Unitech (down 1.3 per cent), Indiabulls Real Estate (down 0.83 per cent) and NBCC (down 0.7 per cent).

The BSE Auto index was trading 0.38 per cent higher, led by gains in Exide Industries (up 3.1 per cent), Bharat Forge (up 2.6 per cent), Tata Motors (up 1.7 per cent) and Bosch (up 1.3 per cent).