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Shares of real estate and automobile companies are in demand, bouncing back from their intra-day’s low, after the Reserve Bank of India (RBI) lowered the statutory liquidity ratio (SLR) by 0.50 basis points half to 22% to free up more money for lending.
The Bombay Stock Exchange (BSE) S&P BSE Auto index and S&P BSE Realty index, the largest gainers among sectoral indices, up 2% each compared to 0.72% rise in benchmark S&P BSE Sensex at 1510 hours.
Mahindra and Mahindra, Bajaj Auto and Tata Motors from auto index have gained 2-4%, while Housing Development and Infrastructure (HDIL), DLF, Unitech, Indiabulls Real Estate, D B Realty and Godrej Properties from real estate sector are up 2-10%.
In support of prospective growth via adequate availability of liquidity, the RBI cut SLR by another 50 bps to 22.0% of net demand and time liabilities (NDTL).
Mr Rana Kapoor, President of the Associated Chambers of Commerce and Industry of India (Assocham) Asscham, says , this is a positive surprise, but in my opinion will create the needed potential liquidity to finance credit demand as the economy is seen turning corner.
As such, the RBI placed a greater responsibility on the Government actions on easing supply side inadequacies to quell price pressures. I am confident that coordination between monetary and fiscal policy coupled with pragmatic governance will facilitate sustained disinflation in the economy, thereby reviving investment climate and growth. This in turn should open up the possibility of monetary easing cycle beginning in Jan-Mar 2015 with a 50 bps cut in the repo rate, he adds.
Among the individual stocks, HDIL has soared 10% to Rs 101, followed by Unitech (7% at Rs 27.70), Indiabulls Real Estate (4% at Rs 81), Mahindra and Mahindra (4% at Rs 1,230) and Bajaj Auto (3% at Rs 2,156).
The Bombay Stock Exchange (BSE) S&P BSE Auto index and S&P BSE Realty index, the largest gainers among sectoral indices, up 2% each compared to 0.72% rise in benchmark S&P BSE Sensex at 1510 hours.
Mahindra and Mahindra, Bajaj Auto and Tata Motors from auto index have gained 2-4%, while Housing Development and Infrastructure (HDIL), DLF, Unitech, Indiabulls Real Estate, D B Realty and Godrej Properties from real estate sector are up 2-10%.
In support of prospective growth via adequate availability of liquidity, the RBI cut SLR by another 50 bps to 22.0% of net demand and time liabilities (NDTL).
Mr Rana Kapoor, President of the Associated Chambers of Commerce and Industry of India (Assocham) Asscham, says , this is a positive surprise, but in my opinion will create the needed potential liquidity to finance credit demand as the economy is seen turning corner.
As such, the RBI placed a greater responsibility on the Government actions on easing supply side inadequacies to quell price pressures. I am confident that coordination between monetary and fiscal policy coupled with pragmatic governance will facilitate sustained disinflation in the economy, thereby reviving investment climate and growth. This in turn should open up the possibility of monetary easing cycle beginning in Jan-Mar 2015 with a 50 bps cut in the repo rate, he adds.
Among the individual stocks, HDIL has soared 10% to Rs 101, followed by Unitech (7% at Rs 27.70), Indiabulls Real Estate (4% at Rs 81), Mahindra and Mahindra (4% at Rs 1,230) and Bajaj Auto (3% at Rs 2,156).
