Banks, realty, capital goods stocks slip in red as RBI keeps rates unchanged

NEW DELHI: Shares in rate sensitive sectors such as banks, realty, and capital goods managed to bounce back from their intraday lows on Tuesday, after the Reserve Bank of India (RBI) on expected lines kept rates unchanged.

In line with market expectations, RBI governor Raghuram Rajan kept repo rate and CRR unchanged, but slashed SLR by 50 basis points to 21.5% from 22%.

The Reserve Bank also indicated that "key to further easing are data that confirm continuing disinflationary pressures. Also critical would be sustained high quality fiscal consolidation".

Given that there have been no substantial new developments on the disinflationary process or on the fiscal outlook since January 15, it is appropriate for the Reserve Bank to await them and maintain the current interest rate stance.

Looking ahead, inflation is likely to be around the target level of 6 per cent by January 2016. As regards the path of inflation in 2015-16, the Reserve Bank will keenly monitor the revision in the CPI, added the RBI note.

At 11:30 a.m.; BSE bankex was trading 0.24 per cent lower, the BSE realty index was trading 0.48 per cent lower, BSE capital goods index was trading 0.10 per cent down, and BSE auto index was up 0.68 per cent.

Among the banking names Punjab National Bank (down 1.7 per cent) was the top loser, followed by Axis Bank (down 1.6 per cent), HDFC Bank (down 1.2 per cent), and Kotak Mahindra Bank Bank (down 1.06 per cent).

The BSE realty index was trading 0.48 per cent lower led by losses in DLF (down 1.1 per cent), Anant Raj Industries (down 1.97 per cent), Unitech (down 0.52 per cent), HDIL (down 0.36 per cent) and Prestige Estate (down 0.24 per cent).

The BSE capital goods index was trading 0.10 per cent lower, led by losses in Crompton Greaves (down 2.8 per cent), Havells India (down 2.2 per cent), Greaves Cotton (down 1.9 per cent), Lakshmi Machine Works ((down 1.3 per cent) and L&T (down 0.51 per cent).