The share price of LIC Housing Finance, Dewan Housing Finance and Gruh Finance jumped 6.28 per cent, 3.61 per cent and 2.71 per cent to Rs 450.50, Rs 215.05 and Rs 267.25, respectively.
The BSE Sensex and NSE Nifty wiped off initial losses and gained over 0.60 per cent as rate-sensitive stocks rallied after the Reserve Bank cut interest rate by 50 basis points on Tuesday. The BSE Sensex and NSE Nifty gained 161.82 points and 47.60 points at 25,778.66 and 7,843.30, respectively.
The RBI cut the repo rate from 7.25 per cent to 6.75 per cent, while it left cash reserve ratio unchanged at 4 per cent.
Aashish Somaiyaa, CEO, Motilal Oswal AMC, said, “RBI has made best use of limited window of opportunity given the continued pause in US Fed action. Today’s action plus accompanying pronouncements will provide much needed confidence and flip to markets as well as industry.”
Below are few stocks that remained in news today
State Bank of India: Country’s largest lender State Bank of India (SBI) on Tuesday slashed minimum lending or base rate by 0.4 per cent to 9.3 per cent, setting the trend for benign interest rate regime. With the reduction in the base rate, all loans, including home, auto and corporate, would become cheaper by at least 0.40 per cent. The share price of SBI closed 1.02 per cent up at Rs 242.
Lanco Infratech: Shares of Lanco Infratech on Tuesday surged over 10 per cent following reports that the company may sell power projects having a capacity of 3,000 MW from 2018 onwards and expects to get Rs 25,000 crore, which would help pare debt and also infuse fresh capital into the group. The share price of the company closed 10.40 per cent up at Rs 4.14.
Andhra Bank: Andhra Bank has cut its base rate by 25 basis points (bps) to 9.75 per cent with effect from September 29, 2015. The move came after Reserve Bank of India (RBI) reduced the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points (bps) from 7.25 per cent to 6.75 per cent. The share price of the bank closed 0.60 per cent up at Rs 67.60.
LIC Housing Finance, Dewan Housing Finance and Gruh Finance: Shares of housing finance companies have surged after Reserve Bank of India (RBI) Governor, in its monetary policy statement said that it is proposed to reduce the risk weights applicable to lower value but well collateralised individual housing loans. Currently, the minimum risk weight applicable on individual housing loans is 50 per cent. The share price of LIC Housing Finance, Dewan Housing Finance and Gruh Finance jumped 6.28 per cent, 3.61 per cent and 2.71 per cent to Rs 450.50, Rs 215.05 and Rs 267.25, respectively.