 "Rate sensitives recover lost ground post RBI policy")
Stocks of companies in rate-sensitive sectors such as banking, automobiles and real estate are trading mixed after the Reserve Bank of India (RBI) maintained status quo on key interest rates in its bi-monthly review of the Monetary Policy today. However, the apex bank has slashed the Statutory Liquidity Ratio (SLR) by 50 basis points to 22%.
Bank Nifty opened at 15,284 levels but dipped 138 points, or 1%, to 15,146 after the policy announcement. However, the index has erased its entire losses and is trading 0.47% or 72 points higher at 15,314 in noon deals.
Among individual stocks, Bank of Baroda, Punjab National Bank, Canara Bank, Bank of India, HDFC Bank and State Bank of India have recovered more than 2% each from their respective intra-day lows.
The RBI has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8% and keeps the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL). However, the central bank has cut the SLR of scheduled commercial banks by 50 basis points from 22.5% to 22% of their NDTL with effect from the fortnight beginning August 9, 2014.
Bank Nifty opened at 15,284 levels but dipped 138 points, or 1%, to 15,146 after the policy announcement. However, the index has erased its entire losses and is trading 0.47% or 72 points higher at 15,314 in noon deals.
Among individual stocks, Bank of Baroda, Punjab National Bank, Canara Bank, Bank of India, HDFC Bank and State Bank of India have recovered more than 2% each from their respective intra-day lows.
The RBI has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8% and keeps the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL). However, the central bank has cut the SLR of scheduled commercial banks by 50 basis points from 22.5% to 22% of their NDTL with effect from the fortnight beginning August 9, 2014.