Rate sensitive shares bounce back after RBI hikes rate; Nifty Bank gains 1%

Shares of rate sensitive sectors traded mostly higher on the bourses after the Reserve Bak of India (RBI) raised the policy repo rate by 50 basis points (bsp) to 5.9 per cent in its monetary policy review on Friday. This is the fourth hike in repo rate in the current financial year. In its Monetary Policy Committee meeting (MPC), the RBI decided to withdraw accodative stance while supporting growth.

Financial indices includes Nifty Bank, Nifty Financial Services, Nifty PSU Bank and Nifty Private Bank index rallied nearly 1 per cent each, as compared to 0.46 per cent rise in the Nifty 50 on the National Stock Exchange (NSE) at 10:34 AM. Among others, the Nifty Auto and Realty indices