New Delhi, Jun 7 (PTI) Rate sensitive stocks rose up to 4

per cent today after the Reserve Bank left policy rates

unchanged but raised lending capacity of banks to support

growth.

Among bank stocks, Federal Bank rose by 2.04 per cent,

ICICI Bank gained 1.91 per cent, PNB 1.77 per cent, Bank of

Baroda 1.40 per cent, SBI 1.22 per cent and Axis Bank 0.58 per

cent.

The BSE bank index rose by 0.73 per cent to end at

26,721.93.

From the auto pack, Bharat Forge went up by 3.78 per

cent, M&M 1.49 per cent, Maruti 1.22 per cent, Ashok Leyland

1.14 per cent and Hero MotoCorp 0.74 per cent.

The BSE auto index closed the day 0.70 per cent higher at

24,251.06.

Realty stocks also attracted buying, with Indiabulls Real

Estate rising 4.11 per cent, Sobha 0.66 per cent and Godrej

Properties 0.23 per cent.

The BSE realty index gained 0.32 per cent to end at

1,954.11.

The BSE benchmark Sensex ended the day with a gain of

80.72 points at 31,271.28.

“The policy will support banks to lend more due to the

advantage of 50 bps cut in SLR,” said Vinod Nair, Head of

Research, Geojit Financial Services Ltd.

RBI’s Monetary Policy Committee (MPC) for the fourth

straight time kept the repo rate unchanged at 6.25 per cent.

The reverse repo, at which RBI borrows, will be 6 per cent.

The central bank however slashed the Statutory Liquidity

Ratio (SLR) or the percentage of deposits that banks have to

park in government securities, by 0.5 per cent to 20 per cent.

The move is expected to raise buoyancy in the loans

market as banks would have slightly higher funds for lending.

This is published unedited from the PTI feed.