Rate sensitive shares fall as RBI keeps key policy rates unchanged

Indiabulls Real Estate, HDIL and Unitech from realty and Allahabad Bank, Canara Bank and Bank of India from banking sector are down more than 2% each on BSE.

Shares of rate sensitive sectors mainly realty, infrastructure and banking are under pressure and trading lower in the range of 1-3% after the Reserve Bank of India (RBI) keeps key policy rates unchanged at its mid-quarter policy review today.

The Bombay Stock Exchange banking index Bankex and realty index are down 1% each.Indiabulls Real Estate, HDIL and Unitech from realty and Allahabad Bank, Canara Bank and Bank of India from banking sector are down more than 2% each compared to 0.41% fall in benchmark Sensex at 1110 hours.

The RBI today left the key repo rates and cash reserve ratio (CRR) unchanged at 7.25% and 4% respectively.

With regards to future guidance the central bank says that “the monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in the months ahead. It is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth.”

While several measures have been taken to contain the current account deficit, we need to be vigilant about the global uncertainty, the rapid shift in risk perceptions and its impact on capital flows. The Reserve Bank stands ready to use all available instruments and measures to respond rapidly and appropriately to any adverse developments, it added.