Rate-sensitive stocks trade mixed after RBI policy

Rate-sensitive stocks from banking, auto and realty sectors were trading in a narrow range on Tuesday after the Reserve Bank of India (RBI) maintained status quo in its fifth bi-monthly monetary policy review and left the repurchase (repo) rate unchanged at 6.75 per cent.

The BSE Bankex index gained as much as 0.44 per cent to 20003.96. Among specific stocks, Indusind Bank, Federal Bank, ICICI Bank, HDFC Bank and SBI were trading in positive territory, while Bank of Baroda, YES Bank and Axis Bank lost up to 1 per cent. 

In the realty sector, Unitech was the best performer, and gained as much as 3 per cent. Oberoi Realty, NBCC, Sobha and India Bulls Housing Finance lost up to 1 per cent, while Prestige, DLF, Godrej Property and DB Realty rose up to nearly one per cent.

Auto sector largely reacted to November sales data with Eicher Motors being the worst performer on the BSE Auto index. The stock slipped 3 per cent. Shares of Cummins India, MRF, Motherson Sumi and Bosch were ruling in positive zone, while Maruti Suzuki, Mahindra and Mahindra, Ashok Leyland, Hero Moto, Bajaj Auto and Tata Motors were trading in red. The BSE Auto index quoted intraday low of 18853.64.

"As expected, a status quo policy, with the RBI rei-iterating that they remain accommodative and are waiting for further room to open up. We hold our view that the next rate cut would be possible only post the budget," said Mr. Murthy Nagarajan, Head -Fixed Income, Quantum AMC.

"With the RBI highlighting the impact of pay commission on the fiscal numbers, it would want to wait and see the markets response to the government's ability to meet the 3.5 per cent fiscal deficit target," added Nagarajan.