Bank, realty, auto stocks fall for second straight day on RBI policy
Interest rate sensitive stocks—banking, realty and auto—fell for the second straight session as RBI’s policy action fails to enthuse investors
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%.
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