Six auto stocks rose by 0.04% to 3% and five realty stocks rose by 1.81% to 7.49% at 14:30 IST on BSE after the central bank reduced the policy repo rate by 50 basis points from 7.25% to 6.75% after a policy meet today, 29 September 2015.
The Reserve Bank of India (RBI) announced fourth bi-monthly monetary policy statement during market hours today, 29 September 2015.
Meanwhile, the S&P BSE Sensex was up 405.71 points, or 1.58%, to 26,022.55.
Among realty stocks, Sobha (up 2.7%), Indiabulls Real Estate (up 5.6%), Unitech (up 1.81%), DLF (up 3.68%) and Housing Development & Infrastructure (HDIL) (up 7.49%) edged higher.
The BSE Realty index had outperformed the market over the past one month till 28 September 2015, rising 5.02% compared with 2.94% fall in the Sensex. The index had also outperformed the market in past one quarter, dropping 6.82% as against Sensex's 7.89% fall.
Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
Among auto stocks, Mahindra & Mahindra (M&M) (up 3%), Ashok Leyland (up 0.72%), Maruti Suzuki India (up 1.52%), Eicher Motors (up 1.1%), Tata Motors (up 1.81%) and TVS Motor Company (up 0.04%) gained. Bajaj Auto (down 0.51%) and Hero MotoCorp (down 0.7%) declined.
The BSE Auto index had underperformed the market over the past one month till 28 September 2015, falling 5.49% compared with 2.94% fall in the Sensex. The index had also underperformed the market in past one quarter, dropping 9.81% as against Sensex's 7.89% fall.
Lower interest rates may help revive demand for vehicles. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
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