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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

SI Reporter  |  Mumbai 

RBI, reserve bank of India
In the February policy, the RBI revised its forecast for India’s economic growth in 2020 to 7.4 per cent from 7.6 per cent earlier. Will it cut it further?

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

First Published: Thu, April 04 2019. 12:13 IST
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