Realty stocks end in green post RBI rate cut; DLF up 3 pc
Stocks of real estate firms gained over 2 pc on the BSE after the Reserve Bank today cut short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points.
By PTI |
MUMBAI: Stocks of real estate firms on Tuesday gained over 2 per cent on the Bombay Stock Exchange after the Reserve Bank today cut short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points.
The Bombay Stock Exchange realty index settled with a gain of 2.27 per cent at 2,249.31 points. During the day the 14- share index had touched a high of 2,274.69 points, up 4.69 per cent on the BSE.
Marketmen said the impact of the RBI's rate cut is likely to benefit the realty sector as banks are expected to pass on the benefit to customers.
Shares of DLF gained 2.84 per cent to settle at Rs 237.35. During the day the scrip had touched a high of Rs 242.70, up 5.16 per cent over previous closing on the BSE.
"Rate sensitive sectors would benefit from RBI's rate cut, only if the banks pass it on to the consumers. However, it is unlikely that the banks would start aggressive lending now as they will fist adjust their cost of borrowing," Ashika Stock Brokers Research Head Paras Bothra said.
In its annual credit policy for 2009-10, the RBI reduced the repo rate to 4.75 per cent and reverse repo to 3.25 per cent with immediate effect, while retaining other key rates like the cash reserve ratio, the percentage of deposits that banks keep with the central bank.
Other major realty sector gainers include Indiabulls Realestate (5.44 per cent), HDIL (5.17 per cent), Parsvnath Developers (1.14 per cent).
The Bombay Stock Exchange realty index settled with a gain of 2.27 per cent at 2,249.31 points. During the day the 14- share index had touched a high of 2,274.69 points, up 4.69 per cent on the BSE.
Marketmen said the impact of the RBI's rate cut is likely to benefit the realty sector as banks are expected to pass on the benefit to customers.
Shares of DLF gained 2.84 per cent to settle at Rs 237.35. During the day the scrip had touched a high of Rs 242.70, up 5.16 per cent over previous closing on the BSE.
"Rate sensitive sectors would benefit from RBI's rate cut, only if the banks pass it on to the consumers. However, it is unlikely that the banks would start aggressive lending now as they will fist adjust their cost of borrowing," Ashika Stock Brokers Research Head Paras Bothra said.
In its annual credit policy for 2009-10, the RBI reduced the repo rate to 4.75 per cent and reverse repo to 3.25 per cent with immediate effect, while retaining other key rates like the cash reserve ratio, the percentage of deposits that banks keep with the central bank.
ADVERTISEMENT
Other major realty sector gainers include Indiabulls Realestate (5.44 per cent), HDIL (5.17 per cent), Parsvnath Developers (1.14 per cent).
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
