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Bank, realty stocks hit as RBI keeps interest rates unchanged

After the Reserve Bank of India announced to keep key interest rates unchanged, rate-sensitive banking and realty stocks were hit on the bourses, losing up to 3 per cent.

BT Online Bureau   Mumbai     Last Updated: June 18, 2012  | 16:04 IST

Rate-sensitive banking and realty stocks fell on Monday by around 3 per cent on Reserve Bank of India's (RBI) decision to keep all key interest rates unchanged.

Financial stocks were the worst hit, with State Bank of India (SBI) trading lower by 3.30 per cent at Rs 2,110.70, followed by HDFC Bank that lost 2.71 per cent to Rs 533 on the Bombay Stock Exchange.

ICICI Bank dropped 2.60 per cent, while Punjab National Bank was down 2.32 per cent; Bank of India 2.94 per cent and Axis Bank 2.7 per cent.

Following the losses in these stocks, the BSE Bankex index was trading 2.55 per cent down at 11,291.39 and was the biggest loser among the 13 sectoral indices.

Among the realty stocks, DLF shed 3.33 per cent, Unitech was down 3.49 per cent and Sobha Developers lost 2.03 per cent. Led by losses in these stocks, the BSE realty index shed 2.10 per cent to quote at 1,588.73.

RBI on Monday kept policy rates unchanged in view of rising inflation and global economic uncertainty. Besides, the central bank also kept cash reserve ratio (CRR) - the percentage of deposits that banks have to keep with RBI - unchanged at 4.75 per cent.

After the policy announcement, the BSE Sensex fell over 200 points to below 17,000-mark it had crossed in the morning trade.

Marketmen were expecting RBI to cut the lending rate (repo) by at least 0.25 per cent and were also looking forward to further cut in CRR to infuse more liquidity in the financial system.

With PTI inputs

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