Bank, realty, auto stocks fall for second straight day on RBI policy
New Delhi: Interest rate sensitive stocks—banking, realty and auto—continued to fall for the second straight session, losing up to 3%, as the Reserve Bank of India’s (RBI) policy action failed to enthuse investors.
Among bank stocks, Punjab National Bank (PNB) closed 5.98% lower, Yes Bank lost 2.44%, ICICI Bank slipped 1.99%, Axis Bank and State Bank of India (SBI) fell by 2.01% and 2.24%, respectively, Bank of Baroda lost 3.16% and Kotak Mahindra Bank slipped 1.32% on the BSE.
Led by the losses in these scrips, the BSE bank index closed 1.66% down to 27,885 points.
From the realty pack, Unitech closed 8.88%, Housing Development and Infrastructure Ltd (HDIL) lost 2.80% and Godrej Properties slipped by 1.28%.
Auto stocks also faced selling pressure, with Tata Motors falling 1.74%, Maruti Suzuki India losing 0.98% and TVS Motor Company slipping 0.28%. The BSE auto index closed at 24,784, down 0.66%.
After a 10-month pause, the RBI on Wednesday cut benchmark lending rate by 0.25% to over six-year low. The repo rate, at which RBI lends to banks, is now down to 6%.