Rate sensitive shares tank; analysts prefer to ride out the storm

Since September 2018, Realty (down 23%), Auto (16%) and Finance (14%) indices have underperformed the market by falling over 13%, as against 8% decline in the benchmark indices

Shares of rate sensitive stocks such as automobiles, finance and realty companies were reeling under pressure with all these sectoral indices hitting their fresh 52-week low on Thursday. 

While the market sentiment, especially in the banking and finance segments, had already turned sour given the developments in IL&FS, YES Bank, Dewan Housing and Indiabulls Housing, analysts say the lower-than-expected sales figures for September dented investor confidence in auto stocks. That apart, the fear of a hike in interest rate by the Reserve Bank of India (RBI) also saw investors shy away from rate sensitives.

“Lower-than-expected sales figures for September dented