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