Rate sensitive shares trade mixed after RBI cuts repo rate by 25 bps

Nifty Auto and Nifty Realty indices were up 0.30 per cent each, while Nifty Bank, Nifty PSU Bank and Nifty Private Bank indices were down 0.30 per cent each at 12 PM

Shares of interest rate sensitive sectors like the bank, real estate, and automobiles were trading mixed on the bourses after the Reserve Bank of India (RBI) on Thursday cut the repo rate by 25 basis points to 6 per cent in the first bi-monthly monetary policy meet of the financial year (FY) 2019-20.

At 12:00 pm, Nifty Auto and Nifty Realty indices were up 0.30 per cent each, while Nifty Bank, Nifty PSU Bank and Nifty Private Bank indices were down 0.30 per cent each. In comparison, the benchmark index Nifty 50 index was down 0.20 per cent on the National Stock Exchange (NSE).

Since previous monetary policy meeting on February 7, 2019, Nifty Realty had rallied 21 per cent, while Nifty PSU Bank and Nifty Bank indices surged 13 per cent and 10 per cent, respectively, against a 5 per cent rise in the Nifty 50 index till Wednesday. The Nifty Auto index, however, was down 3 per cent during the period, due to weak sales.

In its last policy meet (February) and the first under Governor Shaktikanta Das, the central bank had lowered the repo rate by 25 basis points (bps) or 0.25 per cent to 6.25 per cent and changed the policy stance to neutral from calibrated tightening, adopted in October policy meet last year.

Repo rate is the rate at which the RBI lends money to the commercial banks, in case of any shortfall of funds. The MPC voted 4:2 in favour of the 25 basis point (bps) rate cut.

There are some signs of domestic investment activity weakening as reflected in a slowdown in production and imports of capital goods. The moderation of growth in the global economy might impact India’s exports, RBI said in first bi-monthly Monetary Policy Statement, 2019-20.

On the positive side, however, higher financial flows to the commercial sector augur well for economic activity. Private consumption, which has remained resilient, is also expected to get a fillip from public spending in rural areas and an increase in disposable incomes of households due to tax benefits. Business expectations continue to be optimistic, it said.

COMPANY	LATEST (Rs)	CHG(%)*
GODREJ PROPERT.	910.80	2.15
HERO MOTOCORP	2624.50	1.71
PHOENIX MILLS	677.55	1.66
PRESTIGE ESTATES	254.15	1.23
EXIDE INDS.	211.65	0.88
BAJAJ AUTO	2871.50	0.85
ALLAHABAD BANK	53.85	0.84
TATA MOTORS	202.85	0.74
ORIENTAL BANK	112.30	0.63
FEDERAL BANK	95.80	0.63
MARUTI SUZUKI	7112.10	0.55
TVS MOTOR CO.	487.70	0.54
DLF	202.75	0.32
AXIS BANK	763.40	0.25
INDIAN BANK	275.05	0.22
ST BK OF INDIA	321.00	0.16
ASHOK LEYLAND	87.75	-0.06
KOTAK MAH. BANK	1333.40	-0.06
SUNTECK REALTY	467.10	-0.13
BANK OF INDIA	101.55	-0.15
BRIGADE ENTERPR.	247.00	-0.16
HDFC BANK	2288.45	-0.19
MRF	59919.20	-0.20
APOLLO TYRES	219.25	-0.27
MOTHERSON SUMI	149.60	-0.27
DCB BANK	198.80	-0.28
BHARAT FORGE	502.25	-0.31
ICICI BANK	390.90	-0.31
SYNDICATE BANK	42.90	-0.35
BANK OF BARODA	131.55	-0.38
J & K BANK	57.60	-0.52
M & M	654.55	-0.59
CANARA BANK	283.30	-0.65
INDBULL.REALEST.	90.10	-0.66
IDFC FIRST BANK	54.15	-0.73
PUNJAB NATL.BANK	93.75	-0.74
SOBHA	487.40	-0.76
OBEROI REALTY	533.20	-0.89
BOSCH	17834.00	-0.95
EICHER MOTORS	20008.40	-0.96
CENTRAL BANK	35.10	-0.99
INDUSIND BANK	1755.60	-1.01
AMARA RAJA BATT.	663.75	-1.28
UNION BANK (I)	93.55	-1.32
RBL BANK	653.20	-1.49
YES BANK	267.00	-2.45
*% chanage over previous close