 "Rate sensitive stocks fall post RBI policy")
Shares of interest-rate sensitive such as realty, auto and bank stocks were trading lower after the Reserve Bank of India (RBI) kept the repo rate unchanged in its first bi-monthly monetary policy statement for 2015-16.
The National Stock Exchange (NSE) banking share index, Bank Nifty, CNX Auto and CNX Realty indices were down 1%-3% compared to 0.43% fall in the benchmark CNX Nifty at 1110 hours.
Unitech, Indiabulls Real Estate, Sobha Developers, DLF, Prestige Estates and Housing Development & Infrastructure (HDIL) from the real estate sector were down more than 2% each.
ICICI Bank, Axis Bank, Canara Bank and Yes Bank from banking sector and Tata Motors, Ashok Leyland and Hero MotoCorp from automobiles were down 1% each.
However, Federal Bank, Bank of Baroda, Bajaj Auto and TVS Motor Company were up 1% each on the NSE.
The RBI kept the repo rate unchanged at 7.5%. Also, the cash reserve ratio (CRR) was unchanged at 4%.
CRR is the percentage of total funds that the banks have to keep with the RBI. The RBI uses the CRR to drain out excessive liquidity out of the banking system.
The National Stock Exchange (NSE) banking share index, Bank Nifty, CNX Auto and CNX Realty indices were down 1%-3% compared to 0.43% fall in the benchmark CNX Nifty at 1110 hours.
Unitech, Indiabulls Real Estate, Sobha Developers, DLF, Prestige Estates and Housing Development & Infrastructure (HDIL) from the real estate sector were down more than 2% each.
ICICI Bank, Axis Bank, Canara Bank and Yes Bank from banking sector and Tata Motors, Ashok Leyland and Hero MotoCorp from automobiles were down 1% each.
However, Federal Bank, Bank of Baroda, Bajaj Auto and TVS Motor Company were up 1% each on the NSE.
The RBI kept the repo rate unchanged at 7.5%. Also, the cash reserve ratio (CRR) was unchanged at 4%.
CRR is the percentage of total funds that the banks have to keep with the RBI. The RBI uses the CRR to drain out excessive liquidity out of the banking system.