Rate-sensitives have clocked significant gains in the early trade ahead of RBI’s announcement on interest rates on June 7. The RBI MPC has started its meeting on June 5. Investors are closely monitoring developments, as the policy decisions can significantly impact sectors such as banking, real estate, and automobiles.
Tracking banks, auto and real estate
As of midday, the Nifty Bank index, a key barometer for banking stocks, was up by 2.05%, reflecting a bullish sentiment among investors after the BJP lead NDA government was likely to form government . Major banking stocks such as HDFC Bank and ICICI Bank were trading higher, with gains over 2% and 1,30% respectively. In contrast, State Bank of India (SBI) managed a marginal gain of 0.2%.
Real estate stocks presented a mixed bag. DLF Limited saw a jump increase of 2.40%, while Godrej Properties was up by 1.26%. The BSE Realty index was relatively flat, indicating investors’ wait-and-watch approach ahead of the policy announcement.
Automobile shares also experienced varied movements. Maruti Suzuki, India’s largest car manufacturer, witnessed a jumps over 3%, whereas Tata Motors rose by 1.8%, with more gains followed by Hero MotoCorp up by almost 8% being the top gainer in Nifty 50 index.
Investor sentiment
Market participants are speculating on the RBI’s stance amid persistent inflationary pressures and global economic uncertainties. Analysts suggest that the central bank might keep the repo rate unchanged at 6.5%, considering the need to balance inflation control and economic growth.
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