While the benchmark Sensex has moved up only marginally after the Reserve Bank of India’s interest rate hike on Tuesday, banking and realty stocks have been buzzing ahead, apparently helped by the policy stance that limits pressure on the two sectors.
While the Sensex gained 72 points, or 0.4 per cent, between Tuesday and Wednesday, the real estate and banking indices gained 4.8 per cent and 2.8 per cent, respectively.
“People expected a 50-75 basis point (100 basis point is 1 percentage point) hike in the repo rate and the CRR, and when that did not happen it resulted in buying interest and gains for companies within banking and realty sectors,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services.
Yes Bank gained 5.5 per cent on Wednesday and shares of Axis Bank rose 4.4 per cent.
Among real estate firms, Sobha Developers and Indiabulls Real Estate were the major gainers with 3.9 per cent and 3.5 per cent, respectively. Unitech and DLF rose 2.5 per cent and 1.2 per cent, respectively, on Wednesday.