Rate sensitive shares recover; RBI keeps key rates unchanged

BSE Bankex was up 0.3% while Bank Nifty was trading with marginal gains

Rate sensitive shares staged marginal recovery and are trading mixed after a knee jerk reaction post the Reserve Bank of India's stance to keep key rates unchanged at its policy review meet today.

The central bank kept the repo rate unchanged at 7.25% and the cash reserve ratio (CRR) unchanged at 4%

It may be recalled that the central bank had reduced the key policy rate by 75bps since January 2015 with the last reduction of 25bps on June 02, 2015.

BSE Bankex was up 0.3% while the Bank Nifty was trading with marginal gains.

Among financials, SBI, HDFC Bank and Axis Bank were up 0.1-0.7% each. HDFC and ICICI Bank were down 0.2-0.5% each.

Auto shares were mixed with Tata Motors down 1.4% while Maruti Suzuki was up 0.3%. Among two-wheelers Hero MotoCorp was up 2% on robust Q1 earnings while Bajaj Auto was up 0.5%.

In the realty sector, DLF and Unitech were down 1% each. Further, Indiabulls Real Estate was up 5% on good first quarter earnings while DB Realty and Godrej Properties were up over 1% each.