 "Rate sensitive shares plunge on rate hike by RBI")
Shares of rate sensitive sectors such as real estate, infrastructure, automobiles and banking are under pressure falling by up to 12% on the bourses amid concerns that hardening interest rates will hit demand for new loans, housing and vehicles.
The Reserve Bank of India (RBI) today raised the repo rate by 25 basis points to 7.50% cent in a bid to check inflation.
The National Stock Exchange (NSE) CNX Realty index which track the price movements of real estate stocks have plunged 8%, banking index Bank Nifty was down 6%, while CNX Auto and CNX Infra index are down 3% each at 1140 hours.
For the real estate sector, the rise in interest rates will increase the cost of capital for the developer and for the buyer, making it a double burden on the end user as the developer also has to pass on the cost to the end user.
DLF, Indiabulls Real Estate, HDIL, Unitech, Sobha Developers and DB Realty from the real estate sector down 5-10%.
YES Bank, Union Bank of India, Punjab National Bank and IndusInd Bank from banking space and Maruti Suzuki India, Hero MotoCorp and Mahindra and Mahindra from automobiles sector are down 3-11%.
The Reserve Bank of India (RBI) today raised the repo rate by 25 basis points to 7.50% cent in a bid to check inflation.
The National Stock Exchange (NSE) CNX Realty index which track the price movements of real estate stocks have plunged 8%, banking index Bank Nifty was down 6%, while CNX Auto and CNX Infra index are down 3% each at 1140 hours.
For the real estate sector, the rise in interest rates will increase the cost of capital for the developer and for the buyer, making it a double burden on the end user as the developer also has to pass on the cost to the end user.
DLF, Indiabulls Real Estate, HDIL, Unitech, Sobha Developers and DB Realty from the real estate sector down 5-10%.
YES Bank, Union Bank of India, Punjab National Bank and IndusInd Bank from banking space and Maruti Suzuki India, Hero MotoCorp and Mahindra and Mahindra from automobiles sector are down 3-11%.
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