 "Auto stocks firm as RBI cuts repo rate by 25 bps; banking stocks trade flat")
Shares of automobile companies were trading higher by up to 5 per cent on the National Stock Exchange (NSE), after the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) in its sixth bi-monthly monetary policy meeting on Thursday cut the repo rate by 25 bps to 6.25 per cent from 6.50 per cent, earlier.
The MPC also changed its stance to 'neutral' from the 'calibrated tightening' adopted in October meet last year.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth, the committee said in its press release. CLICK HERE TO READ FULL REPORT
Ashok Leyland, TVS Motor Company, Bajaj Auto, Apollo Tyres, Motherson Sumi Systems, Tata Motors, Hero MotoCorp and Mahindra & Mahindra from automobiles and related sectors were up between 2 per cent and 5 per cent on the NSE.
At 11:59 am, Nifty Auto index, the largest gainer among sectoral indices, was up 1.75 per cent, as compared to a 0.28 per cent rise in the benchmark Nifty 50 index. The other interest rate sensitive sectors like Nifty Realty and Nifty Bank indices up 0.3 per cent each, while Nifty PSU Bank index was up 0.61 per cent on the NSE.
Thus far in the current calendar year 2019, Nifty Auto index has underperformed the market by falling 7 per cent mainly due to moderate volume growth on account of challenges like higher insurance costs and lower financing available. In comparison, the Nifty 50 index was up 1.8 per cent till yesterday.
The MPC also changed its stance to 'neutral' from the 'calibrated tightening' adopted in October meet last year.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth, the committee said in its press release. CLICK HERE TO READ FULL REPORT
Ashok Leyland, TVS Motor Company, Bajaj Auto, Apollo Tyres, Motherson Sumi Systems, Tata Motors, Hero MotoCorp and Mahindra & Mahindra from automobiles and related sectors were up between 2 per cent and 5 per cent on the NSE.
At 11:59 am, Nifty Auto index, the largest gainer among sectoral indices, was up 1.75 per cent, as compared to a 0.28 per cent rise in the benchmark Nifty 50 index. The other interest rate sensitive sectors like Nifty Realty and Nifty Bank indices up 0.3 per cent each, while Nifty PSU Bank index was up 0.61 per cent on the NSE.
Thus far in the current calendar year 2019, Nifty Auto index has underperformed the market by falling 7 per cent mainly due to moderate volume growth on account of challenges like higher insurance costs and lower financing available. In comparison, the Nifty 50 index was up 1.8 per cent till yesterday.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%