 "Interest rate sensitive shares dip post RBI policy")
Interest rate-sensitive sectors shares such as bank, auto and realty were down more than 1% each on profit booking after the Reserve Bank of India (RBI) today reduced the repo rate or repurchase rate, the rate at which banks borrow from the central bank, by 25 basis points.
One basis point is one hundredth of a percentage point. The repo rate now stands at 6.5%. The RBI also left the cash reserve ratio unchanged at 4%.
At 11:31 AM Nifty Bank (down 1.7%), Nifty Auto (1.1%) and Nifty Realty (1.5%) indices were down more than 1% each as compared to 1% decline in the Nifty 50 index on the National Stock Exchange (NSE).
Since February 29, Nifty Realty (up 23%), Nifty Bank (16%) and Nifty Auto (15%) indices had outperformed the market by gaining over 14% as compared to 11% rise in the Nifty 50 index till yesterday.
Among banking stocks, ICICI Bank, State Bank of India, Bank of Baroda, Canara Bank, Yes Bank and Bank of India were down 3% each on the NSE.
Tata Motors, Eicher Motors, TVS Motor Company and Bajaj Auto from automobiles and Indiabulls Real Estate, Housing Development and Infrastructure (HDIL), DLF, Unitech and Oberoi Realty were down more than 1% each.
One basis point is one hundredth of a percentage point. The repo rate now stands at 6.5%. The RBI also left the cash reserve ratio unchanged at 4%.
At 11:31 AM Nifty Bank (down 1.7%), Nifty Auto (1.1%) and Nifty Realty (1.5%) indices were down more than 1% each as compared to 1% decline in the Nifty 50 index on the National Stock Exchange (NSE).
Since February 29, Nifty Realty (up 23%), Nifty Bank (16%) and Nifty Auto (15%) indices had outperformed the market by gaining over 14% as compared to 11% rise in the Nifty 50 index till yesterday.
Among banking stocks, ICICI Bank, State Bank of India, Bank of Baroda, Canara Bank, Yes Bank and Bank of India were down 3% each on the NSE.
Tata Motors, Eicher Motors, TVS Motor Company and Bajaj Auto from automobiles and Indiabulls Real Estate, Housing Development and Infrastructure (HDIL), DLF, Unitech and Oberoi Realty were down more than 1% each.
