Stocks

Rate-sensitive bank, financial, realty stocks gain after RBI policy

PTI New Delhi | Updated on October 09, 2020

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Rate-sensitive bank, financial and realty stocks gained on Friday after the Reserve Bank of India left benchmark interest rate unchanged at 4 per cent but retained an accommodative stance.

HDFC was the top gainer in the Sensex pack, rising over 3 per cent.

Bank counters also witnessed buying with ICICI Bank, Bandhan Bank, Axis Bank, HDFC Bank, SBI and Kotak Mahindra Bank trading up to 3.51 per cent higher in the morning trade.

The BSE Bank index rose by over 2 per cent following gains in its components. The benchmark repurchase (repo) rate has been left unchanged at 4 per cent, RBI Governor Shaktikanta Das said while announcing the decisions taken by the Monetary Policy Committee (MPC).

Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with RBI.

Shares of LIC Housing Finance jumped nearly 10 per cent and Repco Home Finance gained 7.76 per cent.

Also, GIC Housing Finance, Indiabulls Housing Finance, AU Small Finance Bank, PNB Housing Finance were trading with up to 7 per cent gains.

Following the rally in these companies, the BSE Finance index was quoting with over 2 per cent gains.

From the realty pack, companies witnessed a mixed trend, while the index was trading 0.79 per cent higher. Counters like Indiabulls Real Estate and DLF rose up to 1.5 per cent.

However, the auto index was in the red.

BSE benchmark Sensex jumped over 300 points in morning trade.

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Published on October 09, 2020
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