Interest rate-sensitive stocks surge on low retail inflation

Interest rate-sensitive stocks surged on Tuesday after the country's consumer price inflation slowed to 6.46 per cent in September, the lowest level since figures were first published in January 2012.

The data may prompt the Reserve Bank of India (RBI) to cut key policy rates earlier than expected, traders say.

Axis Bank shares gained 1.7 per cent, while State Bank of India shares surged 1.5 per cent.

Shares of Mahindra and Mahindra advanced 0.4 per cent and Maruti Suzuki India shares rose 0.5 per cent.

(Reuters)