Rate-sensitive stocks gain after RBI policy

New Delhi, Feb 6 () Rate-sensitive stocks on Thursday closed with gains after the RBI left the policy rates unchanged but maintained its accommodative stance to boost growth.

Among bank stocks, IndusInd Bank gained 4.85 per cent, RBL Bank rose 4.53 per cent, SBI 3.55 per cent, Yes Bank 2.53 per cent, Axis Bank 1.77 per cent, Federal Bank 1.65 per cent, City Union Bank 1.39 per cent and ICICI Bank 0.51 per cent on the BSE.

The BSE Bank index rose 0.95 per cent to close at 35,819.26.

From the auto pack, Eicher Motors climbed 5.26 per cent, Bosch gained 2.44 per cent, TVS Motor Company 2.16 per cent, Hero MotoCorp 1.56 per cent, Motherson Sumi Systems 1 per cent and Ashok Leyland 0.75 per cent.

The auto index closed 0.12 per cent higher at 18,271.25.

"The market has managed to close in positive territory on the RBI's credit policy day. The RBI maintained status quo on its rate decision, which was on expected lines but announced positive measures for housing finance companies that triggered a positive sentiment in the market," Shrikant Chouhan, Senior Vice-President, Equity Technical Research, Kotak Securities said.

In the sixth bi-monthly monetary policy review of 2019-20, the Monetary Policy Committee (MPC) unanimously voted to keep the repo rate unchanged at 5.15 per cent while retaining its accommodative stance.

Among realty companies, Godrej Properties rose 1.93 per cent, Sobha jumped 1.40 per cent, Indiabulls Real Estate 1.16 per cent, Prestige Estates Projects 1.06 per cent, Oberoi Realty 0.52 per cent and Sunteck Realty 0.04 per cent.

However, some companies witnessed decline with DLF falling 2.88 per cent, Omaxe 0.79 per cent, The Phoenix Mills 0.66 per cent and Mahindra Lifespace Developers 0.40 per cent.

The realty index went lower by 0.29 per cent to close at 2,481.15.

"It was an expected move by the RBI, maintaining the repo rate unchanged at 5.15 per cent. With the inflation rate breaching the upper band, it will take time for the central bank to revive the rate cuts. By maintaining the accommodative stance, there is scope for rate cuts once the inflation rate falls back to a comfortable level," Deepthi Mary Mathew, Economist, Geojit Financial Services said.

The 30-share BSE Sensex settled 163.37 points, or 0.40 per cent, higher at 41,306.03. It hit an intra-day high of 41,405.43.

SUM ANUANU