Latest News | Interest Rate-sensitive Realty, Bank, Auto Stocks Fall

New Delhi, Jun 8 (PTI) Interest rate-sensitive realty, bank and auto stocks fell amid profit-taking on Thursday on a day when the Reserve Bank of India announced its monetary policy decision.

From the realty pack, Brigade Enterprises declined 3.12 per cent, Macrotech Developers fell 2.73 per cent, DLF went lower by 2.28 per cent, Sobha dipped 2.11 per cent, Oberoi Realty (1.43 per cent), Godrej Properties (1.40 per cent), Indiabulls Real Estate (1.36 per cent) and The Phoenix Mills (0.70 per cent).

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The BSE realty index fell 1.51 per cent to settle at 3,990.31.

Among auto counters, Cummins India went lower by 1.87 per cent, Mahindra & Mahindra (1.79 per cent), Eicher Motors (1.75 per cent), TVS Motor (1.70 per cent), Tata Motors (1.46 per cent), Bosch (1 per cent), Maruti (0.69 per cent) and MRF (0.41 per cent).

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The BSE auto index declined 0.97 per cent to end at 33,831.37.

Among banking stocks, Kotak Mahindra Bank declined 2.68 per cent, Bandhan Bank fell 1.72 per cent, Axis Bank went lower by 1.43 per cent, AU Small Finance Bank (1 per cent), IndusInd Bank (0.59 per cent), ICICI Bank (0.28 per cent), Federal Bank (0.08 per cent) and State Bank of India (0.08 per cent).

The BSE bankex index dived 0.80 per cent to settle at 49,894.08.

The 30-share BSE Sensex fell 294.32 points or 0.47 per cent to settle at 62,848.64. During the day, it tumbled 353.23 points or 0.55 per cent to 62,789.73.

"Sharp correction in the last hour trade pulled down the Sensex below the 63,000 mark, as realty shares faltered sharply after the recent upsurge. While rate hike pause by the MPC was on expected lines, subdued commentary by the RBI on inflation for this fiscal year dampened the sentiment," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

The Reserve Bank of India on Thursday left its key interest rate unchanged for a second straight policy meeting but signalled that it wants to see inflation moderate more while preserving the growth momentum.

The monetary policy committee (MPC), which has three members from RBI and an equal number of external experts, voted unanimously to keep the benchmark repurchase or repo rate unchanged at 6.50 per cent.

It decided 5:1 to retain the policy stance focused on "withdrawal of accommodation", which was introduced in April last year.

While consumer price inflation eased during March-April 2023 and moved into the tolerance band, headline inflation is still above the target of 4 per cent and is expected to remain so during the rest of the current fiscal, RBI Governor Shaktikanta Das said while announcing the monetary policy decision.

"Therefore, close and continued vigil on the evolving inflation outlook is absolutely necessary, especially as the monsoon outlook and the impact of El Nino remain uncertain," he said. "Our goal is to achieve the inflation target of 4 per cent and keeping inflation within the comfort band of 2-6 per cent is not enough."

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said, Indian equities witnessed profit-booking on the day of the RBI policy meeting outcome, which was on expected lines.

Post the RBI policy outcome; markets saw some profit-booking in interest rate-sensitive sectors, which dragged the indices down, Khemka added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)