Interest rate-sensitive auto and bank stocks ended with losses today after the Reserve Bank raised its benchmark interest rate by 25 basis points on inflationary concerns.
From the auto pack, Exide Industries slipped 3.27 per cent, Motherson Sumi Systems 2.11 per cent, Eicher Motors 1.87 per cent, Maruti Suzuki India 1.75 per cent, TVS Motor Company 0.91 per cent, Hero MotoCorp 0.66 per cent, Mahindra & Mahindra 0.66 per cent and Bajaj Auto 0.56 per cent on the BSE.
The BSE auto index fell by 0.77 per cent to end at 24,307.50.
Among bank stocks, Bank of Baroda went down by 1.82 per cent, Federal Bank 1.79 per cent, ICICI Bank 1.61 per cent, HDFC Bank 1.09 per cent, Axis Bank 0.95 per cent and Yes Bank 0.52 per cent.
The BSE bank index lost 0.55 per cent to settle at 30,834.87.
Some of the realty stocks also witnessed selling, with DLF falling 1.58 per cent, Oberoi Realty 1.48 per cent, Mahindra Lifespace Developers 1.14 per cent and HDIL 1.04 per cent.
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"RBI's decision to hike policy repo rate today is in-line with our expectations," said Dhananjay Sinha, Head, Institutional Research, Economist and Strategist, Emkay Global Financial Services.
The 30-share BSE Sensex lost almost 85 points to close at 37,521.62.
"Overall the policy is on expected lines with the Monetary Policy Committee (MPC) continuing to closely watch inflation. Markets are likely to remain range-bound ...," said Avnish Jain, Head Fixed Income, Canara Robeco Mutual Fund.
The Reserve Bank for the second time in two months today raised its benchmark interest rate by 25 basis points on inflationary concerns, a move that will make home, auto and other loans expensive.
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