Auto, realty stocks zoom 3.5% as RBI hikes rate after four-year pause

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Updated: June 6, 2018 6:42:31 PM

Interest rate-sensitive bank, auto and realty stocks rose by up to 3.5 per cent today following the policy rate hike by the Reserve Bank after a four-year pause. 

Auto, realty stocks zoom 3.5% as RBI hikes rate after four-year pauseAuto and realty stocks rose by up to 3.5 per cent today following the policy rate hike by RBI

Interest rate-sensitive bank, auto and realty stocks rose by up to 3.5 per cent today following the policy rate hike by the Reserve Bank after a four-year pause. Among bank stocks, SBI rose by 2.43 per cent, Punjab National Bank (2.36 per cent), Bank of Baroda (2.03 per cent), Federal Bank (1.09 per cent), Kotak Mahindra Bank (0.90 per cent), YES Bank (0.70 per cent), IndusInd Bank (0.55 per cent), AXIS Bank (0.08 per cent) on BSE.

Led by gains in these stocks, the BSE bank index rose by 0.57 per cent to end at 29,460.10. From realty space, shares of Indiabulls Real Estate gained 2.81 per cent, Godrej Properties (2.76 per cent), Unitech (2.45 per cent), Oberoi Realty (1.63 per cent), Prestige Estates Projects (1.06 per cent), DLF (0.63 per cent), Sobha (0.46 per cent), Omaxe (0.45 per cent) and Phoenix Mills (0.43 per cent).
The BSE realty index settled 1.47 per cent higher at 2,147.92. Shares of Tata Motors went up by 3.56 per cent, Eicher Motors (2.20 per cent), Bajaj Auto (1.78 per cent), Ashok Leyland (1.64 per cent), Mahindra & Mahindra (1.42 per cent), Hero MotoCorp (1.20 per cent), Maruti Suzuki India (0.69 per cent) and TVS Motor Company (0.33 per cent).
The BSE auto index gained 1.57 per cent to close at 24,841.25.
RBI today hiked the key rate for the first time in over four years — by 0.25 per cent — to curb inflationary pressure from high oil prices, a move which will translate into higher EMIs for home, auto and other loans. “The rate hike is in line with market expectations. RBI’s retention of GDP growth projection of 7.4 per cent for the financial year 2018-19 underlines the fact that economy is making significant progress in spite of global headwinds,” said ?Gaurav Gupta, Founder and CEO, Adani Finserve. The BSE Sensex ended the day at 35,178.88, up 275.67 points, or 0.79 per cent.

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