Rate-sensitive stocks show mixed trend post RBI policy announcement
The BSE banking index was trading at 33,735.77, down 112.23 points or 0.33 per cent.
Mumbai: Domestic benchmark equity indices turned volatile in afternoon trade Thursday after the RBI cut repo by 0.25 per cent for the second time in a row, but kept the policy stance at 'neutral' amid uncertainty over monsoon.
The 30-share index fell 160.45 points to 38,716.67 in a knee-jerk reaction at noon, but pared all losses, and was trading 22.24 points, or 0.06 per cent, higher at 38,899.36 at 1230 hours. Similarly, the NSE benchmark Nifty was trading marginally higher at 11,643.40.
Top gainers in the Sensex pack were Hero MotoCorp, Bharti Airtel, Asian Paints, NTPC, Tata Motors, HDFC, Bajaj Auto, Vedanta and Axis Bank, rising up to 1.92 per cent.
While HCL Tech, Yes Bank, Tata Steel, RIL, ONGC, IndusInd Bank, TCS, ICICI Bank, M&M, Infosys, HDFC Bank, ITC and SBI shed up to 2.43 per cent.
Interest rate sensitive stocks - banking, realty and auto - witnessed mixed trend following the Reserve Bank of India (RBI) rate cut announcement.
The BSE auto index was trading at 19,241.02, up 77.92 points or 0.41 per cent, and the BSE realty index gained 0.81 per cent at 2,123.97. The BSE bankex, on the other hand, was hovering around 33,735.77, down 112.23 points or 0.33 per cent.
In an attempt to propel the economy ahead of the general elections, the RBI Thursday lowered the benchmark interest rate by 0.25 per cent, the second cut in a row, to the lowest level in one year on softening inflation.
The central bank, however, kept monetary policy stance 'neutral' amid uncertainty over monsoon. It also lowered GDP growth forecast for the 2018-19 to 7.2 per cent from 7.4 per cent predicted in February policy. Market sentiment was also subdued after foreign investors turned net sellers in the previous trading session, traders said.
Foreign institutional investors (FIIs) pulled out Rs 1,040.48 crore Wednesday, and domestic institutional investors (DIIs) sold equities to the tune of Rs 80.83 crore, provisional data available with stock exchanges showed.