Rate-sensitive stocks, from sectors like banks, financials, automobiles and real estate, were trading firm on the National Stock Exchange (NSE) on Wednesday after the Reserve Bank of India kept key policy rates unchanged as the economy faces a renewed threat to growth from the Covid-19 pandemic, with new cases hitting a record.
“It also unanimously decided to continue with the accommodative stance as long as necessary to sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward. The marginal standing facility (MSF) rate and the bank rate remain unchanged at 4.25 per cent. The reverse repo rate stands unchanged at 3.35 per cent,” RBI governor Shaktikanta Das said in a statement.
At 10:52 am, Nifty PSU Bank, Nifty Auto and Nifty Realty indices were trading higher in the range of 1 per cent to 1.5 per cent on the NSE. Nifty Bank and Nifty Private Bank indices up 0.5 per cent each, as compared to 0.65 per cent rise in the Nifty50 index.
Among individual stocks, DLF, Brigade Enterprises, Sobha, DLF, Sunteck Realty and Indiabulls Real Estate from the realty, Ashok Leyland, Bosch, Motherson Sumi Systems, Eicher Motors, Bajaj Auto and Hero MotoCorp from automobiles were up in the range of 1 per cent to 3 per cent. Besides, State Bank of India, Bank of India, Bank of Baroda, Punjab National Bank, Bandhan Bank, IndusInd Bank and IDFC First Bank also gained up to 3 per cent on the NSE.
Repo rate and the reverse repo rate remain unchanged at 4 per cent and 3.35 per cent. "The stance of the monetary policy will remain accommodative till the prospects of economic recovery are not sustained," the RBI governor said, at a virtual press conference in Mumbai, after a three-day meeting of the regulator’s monetary policy committee.
The central bank also retained its growth outlook for the fiscal year started April 1 at 10.5 per cent, unchanged from its February outlook. CLICK HERE TO READ FULL REPORT