Interest rate sensitive stocks, such as banking, auto and realty, surged up to 7% on hopes that the Reserve Bank of India (RBI) will ease key rates in its annual policy tomorrow.
Shares of State Bank of India (SBI) were up 2.44% to Rs 2,265.40. ICICI Bank ended 1.02% higher at Rs 873.45, while Axis Bank rose 3%, Bank of India surged 2.26%, Canara Bank gained 1.86%, IDBI Bank rallied 3.18% and Indusind Bank climbed 3.47%.
Following the surge registered in these stocks, the BSE banking index gained 1.22% to 12,028.61.
"Market expects a 25 basis points cut both in CRR and interest rates in tomorrow's credit policy," Rikesh Parikh, VP (Equities), Motilal Oswal Securities, said.
In the auto space, Tata Motors was the top gainer surging 3.91%, Maruti Suzuki was up 1.41%, Apollo Tyres went up by 0.81% and Bajaj Auto climbed 0.76%.
The gains pushed the BSE auto index up by 1.31% at 10,288.94.
Among realty stocks, HDIL shot up 4.95%, DB Realty by 2.09%, DLF by 0.83% and Parsvnath by 7.23%.
Led by gains in these stocks, the BSE realty index settled 1% higher at 1,781.47.
In the broader market, the BSE benchmark Sensex closed at 17,150.95, up 0.33%.
