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Bank of Baroda, Hero MotoCorp and DLF top gainers among banks, auto and realty stocks as RBI springs no surprise

Bank of Baroda, Hero MotoCorp and DLF top gainers among banks, auto and realty stocks as RBI springs no surprise

By Kanishka Sarkar   IST (Published)

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Most rate-sensitive stocks rose on Wednesday after the Reserve Bank of India (RBI) raised the key lending rate by 50bps to 4.9 percent. Here's how shares across sectors reacted to the RBI policy announcement

Most rate-sensitive stocks — the stocks of companies in sectors sensitive to changes in interest rates — edged higher on Wednesday following the Reserve Bank of India’s (RBI's) repo rate hike announcement. The central bank raised the key lending rate by 50 basis points (bps) to 4.9 percent. One basis point is one-hundredth of a percentage point.
This is the second increase in the repo rate — the key rate at which the RBI lends short-term funds to commercial banks — since August 2018. In May, the RBI had, in a surprise move, announced a 40 bps hike in the repo rate.
HDFC Bank, Axis Bank, Ashok Leyland, Tata Motors, Bank of Baroda, Federal Bank, Titan, and Bajaj Electric made it to the green territory post the RBI announcement. ICICI Lombard General Insurance Co, Muthoot Finance, Escorts, Whirlpool, and Crompton were among those in the red.
Realty stocks, too, welcomed RBI’s announcements as Governor Shaktikanta Das said the housing loan limit for urban cooperative banks has more than doubled to account for the rise in realty prices, whereas rural cooperative banks have been allowed to lend for residential housing.
Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers, said that while the major part of the rate hike was already factored in by most parts of the financial market, in the near term, a higher than expected rate hike can have some negative influence in the equity and bond market.
Here's how some rate-sensitive stocks reacted to the RBI's announcements:
Banking 
StockChange (%)
Kotak Mahindra Bank0.58
Federal Bank0.93
IDFC First Bank1.44
Punjab National Bank1.44
ICICI Bank0.51
State Bank of India1.69
Axis Bank0.85
AU Small Finance Bank0.6
Bandhan Bank0.44
HDFC Bank1.03
IndusInd Bank1.33
Bank of Baroda2.99
Financials 
StockChange (%)
ICICI Lombard General Insurance Co-3.32
SBI Life1.14
Muthoot Finance-0.6
HDFC Life0.5
ICICI Prudential Life Insurance Comp0.01
HDFC AMC1.36
REC Limited2.24
Power Finance Corp1.41
HDFC0.82
Bajaj Finserv2.09
SBI Card2.98
Bajaj Finance2.22
Cholamandalam Investment and Fin Co3.9
Piramal Enterprises-0.47
Shriram Transport Finance Company0.98
Auto 
StockChange (%)
Tube Investments of India Limited2.02
Balkrishna Industries Limited-0.11
MRF0.56
Escorts-0.8
Bharat Forge0.46
Bosch Limited0.45
Tata Motors0.34
Mahindra and Mahindra0.03
Eicher Motors0.14
Hero Motocorp0.96
Maruti0.03
Sona Blw Precision Forgings-0.04
Bajaj Auto0.13
TVS Motor-0.28
Ashok Leyland0.47
Real Estate 
StockChange (%)
Lodha3.08
Prestige2.26
Phoenix Ltd0.57
Brigade1.81
Godrej Properties0.99
Oberoi Realty1.14
Sobha Ltd1.97
DLF1.82
Indiabulls Real Estate0.83
Sunteck Realty0.25
Consumer durables 
StockChange (%)
TTK Prestige0.33
Orient Electric0.62
Relaxo0.29
Rajesh Exports3.09
Whirlpool-0.5
Blue Star Co0.16
V Guard0.09
Kajaria Ceramics-2.4
Bata India-0.23
Crompton-0.14
Havells-0.7
Titan1.01
Dixon0.54
Amber-2.41
Voltas0.06
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