Interest-rate sensitive stocks gain up to 9% after RBI policy
RBI in its third bi-monthly monetary policy today kept the key policy rate unchanged but slashed SLR by 0.5% to unlock about Rs 40,000 crore into the system.
By PTI | Updated:
MUMBAI: Interest-rate sensitive realty, auto and bank stocks today made handsome gains, surging as much as 9 per cent following RBI Governor Raghuram Rajan's move to give more funds to banks for lending even as he left rates unchanged for the third straight time.
Shares of Housing Development and Infrastructure Ltd soared 8.63 per cent, while Unitech surged 6.36 per cent and DLF rose by 2.09 per cent on the BSE.
Led by the gains in these stock, the BSE realty index ended 2.65 per cent higher at 1,943.55.
From auto pack, Mahindra & Mahindra climbed 3.83 per cent, Bajaj Auto gained 2.96 per cent, Tata Motors (2.20 per cent) and Maruti Suzuki India (0.68 per cent).
Following the gains in these scrips, the BSE auto index settled 2.11 per cent up at 15,886.81.
Among banking stocks, HDFC Bank went up by 0.84 per cent and SBI rose by 0.36 per cent.
Bank of Baroda jumped 1.24 per cent, PNB rose by 0.91 per cent.
"The RBI kept key policy rates unchanged and cut SLR or statutory liquidity ratio by 50 bps. Led by this rate sensitive sectors like realty and auto were top gainers," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.
The Reserve Bank of India in its third bi-monthly monetary policy today kept the key policy rate unchanged but slashed statutory liquidity ratio (SLR) by 0.5 per cent to unlock about Rs 40,000 crore into the system.
Also, it reduced the ceiling of banks total holdings of SLR securities under the held to maturity to 24 per cent from 24.5 per cent of net demand and time liabilities.
"Monetary policy was in-line with market expectations. SLR cut is a step in the right direction that will result in more money being available for the private sector.
"With the RBI and government both committed to bringing down inflation, there is already progress on achieving the same and eventually ridding the economy completely of the high inflation in past few years is likely to be a very positive catalyst for the economy and markets," said Dinesh Thakkar, Chairman & Managing Director, Angel Broking.
In the broader market, the BSE benchmark Sensex ended at 25,908.01, up 184.85 points.
Shares of Housing Development and Infrastructure Ltd soared 8.63 per cent, while Unitech surged 6.36 per cent and DLF rose by 2.09 per cent on the BSE.
Led by the gains in these stock, the BSE realty index ended 2.65 per cent higher at 1,943.55.
From auto pack, Mahindra & Mahindra climbed 3.83 per cent, Bajaj Auto gained 2.96 per cent, Tata Motors (2.20 per cent) and Maruti Suzuki India (0.68 per cent).
Following the gains in these scrips, the BSE auto index settled 2.11 per cent up at 15,886.81.
Among banking stocks, HDFC Bank went up by 0.84 per cent and SBI rose by 0.36 per cent.
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Bank of Baroda jumped 1.24 per cent, PNB rose by 0.91 per cent.
"The RBI kept key policy rates unchanged and cut SLR or statutory liquidity ratio by 50 bps. Led by this rate sensitive sectors like realty and auto were top gainers," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.
The Reserve Bank of India in its third bi-monthly monetary policy today kept the key policy rate unchanged but slashed statutory liquidity ratio (SLR) by 0.5 per cent to unlock about Rs 40,000 crore into the system.
Also, it reduced the ceiling of banks total holdings of SLR securities under the held to maturity to 24 per cent from 24.5 per cent of net demand and time liabilities.
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"Monetary policy was in-line with market expectations. SLR cut is a step in the right direction that will result in more money being available for the private sector.
"With the RBI and government both committed to bringing down inflation, there is already progress on achieving the same and eventually ridding the economy completely of the high inflation in past few years is likely to be a very positive catalyst for the economy and markets," said Dinesh Thakkar, Chairman & Managing Director, Angel Broking.
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In the broader market, the BSE benchmark Sensex ended at 25,908.01, up 184.85 points.
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