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Rate sensitive stocks show mixed trend post RBI policy announcement

Rate sensitive stocks show mixed trend post RBI policy announcement

Mumbai, Apr 4 (PTI) Interest rate sensitive stocks - banking, realty and auto - witnessed mixed trend Thursday following the RBI's rate-cut announcement. The Reserve Bank of India Thursday cut benchmark interest 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, Hero MotoCorp surged 1.75 per cent, Cummins India 1.27 per cent, Tata Motors 0.92 per cent, Bajaj-Auto 0.83 per cent, Maruti 0.79 per cent and TVS Motor 0.75 per cent. Meanwhile, some stocks in BSE Auto index was also trading in the negative territory including Bosch Ltd down 0.92 per cent, Eicher Motor 0.55 per cent, M&M 0.36 per cent and Bharat Forge 0.28 per cent. The BSE auto index was quoted at 19,241.02, higher by 77.92 points or 0.41 per cent. From bank index, Axis Bank gained 0.25 per cent, Federal Bank 0.21 per cent, State Bank of India 0.11 per cent and Bank of Baroda 0.08 per cent. On the other hand, shares of Yes Bank fell 1.90 per cent, IndusInd Bank 0.94 per cent, ICICI Bank 0.40 per cent, HDFC Bank 0.30 per cent, and Kotak Mahindra Bank 0.21 per cent. The BSE banking index was trading at 33,735.77, down 112.23 points or 0.33 per cent. The BSE realty shares also depicted a mixed trend, with Prestige Estates Projects rising 2.62 per cent, Godrej Properties Ltd 2.25 per cent, Mahindra Lifespace Developers 1.34 per cent, Phoenix Mills Ltd 1.31 per cent and DLF 0.87 per cent. In contrast, Oberoi Realty Ltd fell 0.70 per cent, Sobha Limited 0.57 per cent, Indiabulls Real Estate Ltd 0.44 per cent, Omaxe Ltd 0.40 per cent and Indiabulls Real Estate Ltd 0.17 per cent. The BSE realty index gained 0.81 per cent at 2,123.97. "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 DRRDRR