Interest rate sensitive stocks gain upto 4% ahead of RBI policy
Nifty PSU Bank, Nifty Private Bank, Nifty Auto and Nifty Realty indices were up 2% as compared to 1.6% rise in the benchmark Nifty 50 index at 10:31 am
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Shares of interest-rate sensitive sectors such as auto, banking and realty were trading higher by up 4% on the National Stock Exchange (NSE) ahead of the Reserve Bank of India's (RBI) first bi-monthly monetary policy for the financial year 2018-19 (FY19) today.
The public and private sector banking share indices - Nifty PSU Bank, Nifty Private Bank, automobile index Nifty Auto and real estate sector index Nifty Realty, were trading 2% higher as compared to 1.6% rise in the benchmark Nifty 50 index at 10:31 am.
Allahabad Bank, Canara Bank, Bank of India, Syndicate Bank, YES Bank and ICICI Bank from banking were up 3% each. Apollo Tyres, Exide Industries, Tata Motors, MRF, Mahindra & Mahindra (M&M) from auto index and Indiabulls Real Estate, Prestige Estates Projects, Sobha, DLF and Oberoi Realty from realty index were up in the range of 2% to 4% on the NSE.
There is a clear consensus that the six-member monetary policy committee of the RBI would keep the repo rate unchanged at 6% on Thursday.
It is believed in the near term that RBI is likely to remain rates on hold, settling down the effect of inflation is important to understand what the next interest rate cycle will look like, IFA Global said in RBI Monetary Policy Preview.
Definitely, RBI should not go hastily for a rate hike to keep higher carry trade in the market. But recent increase in deposit rates and MCLR by many banks has raised the prospects for an across-the-board rise in interest rates. The decision related to foreign portfolio investors’ (FPI) debt limits will also be watched closely. The expectation is that the FPI debt limit may be increased to 6-8% gradually over the next two to three years from 5% currently, it added.
The public and private sector banking share indices - Nifty PSU Bank, Nifty Private Bank, automobile index Nifty Auto and real estate sector index Nifty Realty, were trading 2% higher as compared to 1.6% rise in the benchmark Nifty 50 index at 10:31 am.
Allahabad Bank, Canara Bank, Bank of India, Syndicate Bank, YES Bank and ICICI Bank from banking were up 3% each. Apollo Tyres, Exide Industries, Tata Motors, MRF, Mahindra & Mahindra (M&M) from auto index and Indiabulls Real Estate, Prestige Estates Projects, Sobha, DLF and Oberoi Realty from realty index were up in the range of 2% to 4% on the NSE.
There is a clear consensus that the six-member monetary policy committee of the RBI would keep the repo rate unchanged at 6% on Thursday.
It is believed in the near term that RBI is likely to remain rates on hold, settling down the effect of inflation is important to understand what the next interest rate cycle will look like, IFA Global said in RBI Monetary Policy Preview.
Definitely, RBI should not go hastily for a rate hike to keep higher carry trade in the market. But recent increase in deposit rates and MCLR by many banks has raised the prospects for an across-the-board rise in interest rates. The decision related to foreign portfolio investors’ (FPI) debt limits will also be watched closely. The expectation is that the FPI debt limit may be increased to 6-8% gradually over the next two to three years from 5% currently, it added.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| APOLLO TYRES | 292.85 | 282.15 | 3.79 |
| INDBULL.REALEST. | 187.10 | 180.65 | 3.57 |
| EXIDE INDS. | 239.15 | 230.95 | 3.55 |
| ALLAHABAD BANK | 50.85 | 49.20 | 3.35 |
| PRESTIGE ESTATES | 302.65 | 293.05 | 3.28 |
| TATA MOTORS-DVR | 205.70 | 199.20 | 3.26 |
| BANK OF INDIA | 106.75 | 103.45 | 3.19 |
| CANARA BANK | 270.70 | 262.50 | 3.12 |
| TATA MOTORS | 366.55 | 355.60 | 3.08 |
| SOBHA | 510.75 | 495.75 | 3.03 |
| UNITECH | 6.95 | 6.75 | 2.96 |
| IDBI BANK | 72.05 | 70.00 | 2.93 |
| SYNDICATE BANK | 58.25 | 56.65 | 2.82 |
| DLF | 204.15 | 198.60 | 2.79 |
| ORIENTAL BANK | 95.05 | 92.55 | 2.70 |
| YES BANK | 313.65 | 305.45 | 2.68 |
| MRF | 76670.00 | 74734.20 | 2.59 |
| IDFC BANK | 49.45 | 48.25 | 2.49 |
| M & M | 774.00 | 756.55 | 2.31 |
| ICICI BANK | 274.85 | 268.65 | 2.31 |
| ANDHRA BANK | 43.30 | 42.35 | 2.24 |
| UNION BANK (I) | 97.75 | 95.65 | 2.20 |
| INDIAN BANK | 309.20 | 302.90 | 2.08 |
| OBEROI REALTY | 506.20 | 496.05 | 2.05 |
| ST BK OF INDIA | 252.30 | 247.30 | 2.02 |
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