New Delhi, Apr 5 (PTI) Shares of interest rate-sensitive stocks like auto, banking and realty today ended in the positive territory after the Reserve Bank maintained status quo in key rates citing uncertainties over inflation.
The Reserve Bank today kept the key policy rate unchanged at 6 per cent for the fourth consecutive time since August last year.
“The stance was widely expected because there were numbers of things that were in favour. GDP inching to 7.2 per cent and now is projected to 7.3 in the coming Financial Year,” Epic Research CEO Mustafa Nadeem said in a note.
Nadeem further said inflation is easing and “on top of it, we have seen latest monsoon reports projecting the normal forecast paves the way for RBI to keep its stance neutral”.
In the banking pack, Kotak Mahindra Bank settled for the day with gains of 3.38 per cent, while Yes Bank ended higher by 2.36 per cent, State Bank of India 4.66 per cent, Federal Bank 2.35 per cent, Punjab National Bank 3.02 per cent and Bank of Baroda 5.72 per cent.
The BSE bank index settled for the day at 27,693.53 points higher by 2.78 per cent.
The repo rate, at which the central bank lends short-term money to other banks, will continue to stay at 6 per cent. The reverse repo, rate at which it borrows from banks and absorbs excess liquidity, will remain at 5.75 per cent.
In the realty segment, Godrej Properties ended the day up 1.46 per cent, Prestige Estates Projects 3.03 per cent, Oberoi Realty 0.38 per cent.
At the end of today’s trade the BSE realty index was at 2281.22, up 2.55 per cent.
In the auto pack, Mahindra & Mahindra settled up 1.88 per cent, Tata Motors 2.22 per cent and Bajaj Auto 1.22 per cent.
The BSE auto index jumped by 1.76 per cent to 25,323.15 points.
The Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel expects the growth rate to accelerate to 7.4 per cent in 2018-19, up from 6.6 per cent last fiscal, ended March 31, mainly on account of revival of investment activity.
This is published unedited from the PTI feed.