Interest-rate sensitive stocks end mixed after RBI policy

Interest-rate sensitive bank, realty and auto stocks ended the day on a mixed note today as RBI Governor Raghuram Rajan left the key interest rate unchanged.
Shares of Indusind Bank rose 0.71 per cent, HDFC Bank was up 0.51 per cent and Federal Bank surged 0.26 per cent on BSE.
On the other hand, AXIS Bank lost 1.54 per cent, Bank of Baroda fell 1.36 per cent, Yes Bank (0.85 per cent), Kotak Mahindra Bank (0.46 per cent), SBI (0.46 per cent), PNB (0.45 per cent) and ICICI Bank (0.18 per cent).
The BSE bank index was down 0.29 per cent to settle at 19,858.36.

"RBI maintained status quo in key policy rates as expected after a 50 bps cut in the last policy. Overall, today's policy action should be neutral for both equity and bond markets especially with key global events like US Fed rate decision ahead of us", said Jyoti Vaswani, Chief Investment Officer, Future Generali Life Insurance.
Among realty scrips, Unitech rose by 2.40 per cent, DLF (2.26 per cent), Prestige Estates (1.10 per cent), while Indiabulls Real Estate fell by 1.72 per cent, Sobha Ltd lost (1.68 per cent), Godrej Properties (1.13 per cent), Oberoi Realty (0.62 per cent).

The realty index ended flat at 1,347.58, up 0.27 per cent.

From the auto space, Tata Motors was down 1.41 per cent, Ashok Leyland (1.22 per cent), Hero MotoCorp (0.92 per cent), Bajaj Auto (0.82 per cent) and Maruti (0.52 per cent).
The auto index lost 0.58 per cent to end at 18,854.65.
Auto companies also came out with their monthly sales data today which also influenced trading to some extent.
In the broader market, the BSE Sensex ended flat at 26,169.41, up 23.74 points.
RBI Governor Raghuram Rajan today left the key interest rate unchanged as widely expected in view of rise in retail inflation to 4-month high and likelihood of capital outflows on a possible US Fed rate hike later this month.

The Reserve Bank, which has lowered interest rate by 125 basis points or 1.25 per cent this year, including a larger- than-expected 50 bps cut at the last monetary policy review in late September, left the benchmark lending rate (repo) at 6.75 per cent.
The cash reserve ratio or the amount of deposits banks park with RBI has also been left unchanged at 4 per cent.