Business News

Rate-sensitive stocks gain up to 5 per cent ahead of Reserve Bank of India policy meet

Rate-sensitive stocks gain up to 5 per cent ahead of Reserve Bank of India policy meet

New Delhi: Bank, realty and auto stocks today surged nearly five per cent in morning trade on BSE ahead of the Reserve Bank’s policy review meet. Among bank stocks, State Bank of India rose 1.06 per cent, while PNB jumped 2.01 per cent, Federal Bank (4.39 per cent) and Yes Bank (2.05 per cent) on BSE. Shares of ICICI Bank went up by 0.95 per cent and Bank of Baroda saw a rise of 1.38 per cent. Accordingly, the BSE bank index was also trading with gains of 0.68 per cent at 21,218.24 points at 11.46 hours.

Among realty scrips, NBCC surged 0.59 per cent, Oberoi Realty gained 2.77 per cent and Unitech went up by 5.31 per cent. The realty index was trading higher by 0.71 per cent at 1288.49 at 11.47 hours. From auto space, shares of Tata Motors advanced by 0.88 per cent, Bajaj Auto saw a rise of 0.98 per cent and Hero MotoCorp (1.62 per cent).

The auto index was quoted at 20,082.86, up 0.68 per cent. Home, auto and corporate loans may get cheaper if the Monetary Policy Committee (MPC) goes for a rate cut. Brokers said sentiment remained upbeat as investors prepared for fresh bets in anticipation of a rate cut. The RBI policy meet, scheduled for later in the day, will be the first after demonetisation.

PTI