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Rate-sensitive stocks see mixed trend post RBI rate cut

Rate-sensitive stocks see mixed trend post RBI rate cut

(Eds: Updating with closing figures) Mumbai, Apr 4 (PTI) Interest rate-sensitive banking, realty and auto stocks showed mixed trend Thursday following the RBI's rate-cut announcement. The Reserve Bank of India (RBI) Thursday cut repo rate by 0.25 per cent for the second time in a row to bring interest rate to the lowest level in one year on softening inflation. Following the announcement, among the BSE auto pack, Exide Industries settled for the day with the maximum gains of 2.76 per cent, followed by Tata Motors 2.49 per cent, Hero MotoCorp 2.13 per cent, Eicher Motor 1.65 per cent, Apollo Tyres 1.32 per cent, TVS Motor 0.72 per cent, Bajaj Auto 0.62 per cent, Maruti 0.57 per cent, Bharat Forge 0.44 per cent and Motherson Sumi 0.13 per cent. Meanwhile, some stocks in BSE auto index also ended in the negative territory including Cummins India down 1.62 per cent, Bosch Ltd 1 per cent, M&M 0.55 per cent, Ashok Leyland 0.46 per cent and MRF 0.03 per cent. The BSE auto index settled the day at 19,280.67, higher by 117.57 points or 0.61 per cent. In the bankex, City Union Bank jumped the most with gains of 2.29 per cent, followed by State Bank of India 0.33 per cent and Axis Bank 0.10 per cent. On the other hand, shares of Yes Bank fell the most, down 2.05 per cent; followed by IndusInd Bank 1.86 per cent, Kotak Mahindra Bank 1.08 per cent, ICICI Bank 0.99 per cent, Bank of Baroda 0.57 per cent, HDFC Bank 0.48 per cent and Federal Bank 0.47 per cent. The BSE bankex closed for the day at 33,621.40, down 226.60 points or 0.67 per cent. The BSE realty shares also depicted a mixed trend, with Godrej Properties Ltd rising the most by 2.56 per cent, followed by Prestige Estates Projects 2.36 per cent, Mahindra Lifespace Developers 1.66 per cent and Sunteck Realty 0.97 per cent. In contrast, Sobha Limited slumped the most by 1.29 per cent, Indiabulls Real Estate Ltd 1.16 per cent, DLF 0.50 per cent, Omaxe Ltd 0.43 per cent, Phoenix Mills Ltd 0.19 per cent and Oberoi Realty Ltd 0.08 per cent. The BSE realty index closed at 2,110.61, higher by 3.79 points or 0.18 per cent. "It's a much expected and welcoming decision from the RBI. The street was discounting the same and the industry and sectors were looking forward to it," Mustafa Nadeem, CEO, Epic Research. Nadeem further said "over the short term, we believe this could trigger a short term correction. Currently, the market was discounting the rate cut and also on the hope of a decisive mandate in upcoming Lok Sabha 2019 elections". PTI DRR ANSANS