Banking, realty stocks gain post RBI rate announcement
Rate sensitive stocks like banking and realty posted impressive gains on the Bombay Stock Exchange today after the Reserve Bank kept the policy rates unchanged.business Updated: Dec 16, 2010 20:49 IST
Rate sensitive stocks like banking and realty posted impressive gains on the Bombay Stock Exchange on Thursday after the Reserve Bank kept the policy rates unchanged.
Led by gains in State Bank of India, HDFC and ICICI Bank, the BSE banking index surged by 236.23 points, or 1.86%, to settle at 12,958.88 points.
Country's largest lender SBI surged by 2.44% to Rs 2,761.85, while biggest private lender ICICI Bank rose by 2.44%. Another banking major HDFC Bank climbed 1.80% on BSE.
The BSE realty index rose by 26.97 points, or 0.98%, to end at 2,771.70. Realty giant DLF went up 1.56%, while Unitech rose by 1.21%.
RBI in its mid-quarter review of monetary policy kept short-term lending and borrowing rates unchanged at 6.25% and 5.25%, respectively. It also maintained the mandatory cash reverse ratio at 6%.
Marketmen said that the move will help inject liquidity into the system which is facing huge cash crunch and in return help the corporate sector at large.
"Keeping the rates unchanged is maintenance of the status-quo. On its implications on the broader market I think business will be as usual on the street," Unicon Financial CEO Gajendra Nagpal said.
Fag-end buying in financial stocks pushed the benchmark index Sensex up by 217 points at 19,864.85 points.
In the auto pack, Hero Honda was the top gainer, while Mahindra & Mahindra, Maruti Suzuki and Bajaj Auto slipped into the red.
Hero Honda soared 3.57% to close at Rs 1,679.10 amid media reports of split in the joint venture between Hero Group and Japan's Honda.
Mahindra & Mahindra lost 2.73%, Maruti went down by 1.23% and Bajaj Auto fell 0.95%.
The BSE auto index finished flat at 9,890.72 points.