Shares of interest rate-sensitive stocks — banking, auto and real estate — ended little changed on Wednesday after the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 6% during its fourth bi-monthly monetary policy review. The BSE Bankex index rose by 0.17 % by closing at 27,126.98 points.
Among the banking stocks, Kotak Mahindra Bank rose the most by 2.16%, followed by Yes Bank, State Bank of India (SBI), Federal Bank, Punjab National Bank (PNB), IndusInd Bank and Bank of Baroda (BoB). Shares of banks in BSE Bankex rose anywhere between 0.20 to 2.20 %.
The BSE Realty index ended the session 11.64 points higher at 2,085.65 points. Godrej Properties led the pack of real estate stocks with 4.22 % gain. Followed by Godrej Properties, Phoenix, Prestige and Oberoi Realty were the gainers in BSE Realty index whose shares rose anywhere between 0.9 to 2%.
The BSE auto index rose by 0.30 % and closed at 24,451.68 points. Mahindra & Mahindra (M&M) was the biggest gainer; the stock rose by 1.89 % and ended the session at `1,289.05. Shares of Bharat Forge, Tata Motors and Bosch, Ashok Leyland and Bajaj Auto rose anywhere between 0.1 to 2% on Wednesday.
“Private banks are more aggressive lenders and for them more funds will be released and as a result they will benefit more. Apart from banks, auto sector is likely to benefit. Auto has started performing better. While real estate on the other hand is a volatile sector. As demand is not picking up, I would avoid real estate,” said A K Prabhakar, head of research at IDBI Capital.