The RBI’s decision to keep the policy rates unchanged evoked mixed response for rate sensitive stocks on Tuesday.
The RBI’s decision to keep the policy rates unchanged evoked mixed response for rate sensitive stocks on Tuesday. Sectoral indices for auto companies and banks closed in the red, while sectoral index for real estate scrips posted gains.
The BSE Bankex index closed 0.3% lower as shares of seven out of ten companies on the index closed in the red. Axis Bank was the biggest loser during the session as shares of India’s third-largest private bank declined 1.54%. Scrips of Bank of Baroda and YES Bank fell 1.36% and 0.85%, respectively. The BSE Reality index closed 0.27% higher. Shares of Unitech and DLF added 2.4% and 2.26%, respectively.
“The market remained range bound amid RBI’s decision to maintain the status quo. RBI kept the key rates unchanged in order to curtail the targeted CPI at 6% by January 2016,” said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services, adding that investors are awaiting global triggers.
Notwithstanding RBI Governor Raghuram Rajan’s remarks on optimistic outlook on auto sector especially in the passenger cars segment, majority of auto scrips closed in the red. The poor investor sentiment was due to lower than expected November sales for Maruti Suzuki, Eicher Motors, Mahindra & Mahindra and Ashok Leyland. The BSE Auto index declined nearly 0.6% on Tuesday. Shares of Eicher Motors fell 2.94%, while Tata Motors and Ashok Leyland lost 1.4% and 1.2%, respectively.