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    Rate sensitive stocks mixed after RBI policy; PSU Bank index jumps 6%, Nifty auto in the red

    Rate sensitive stocks mixed after RBI policy; PSU Bank index jumps 6%, Nifty auto in the red

    Rate sensitive stocks mixed after RBI policy; PSU Bank index jumps 6%, Nifty auto in the red
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    By Pranati Deva   IST (Published)

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    Rate sensitive stocks were trading mixed after the Reserve Bank of India delivered its first monetary policy of 2021.

    Rate sensitive stocks were trading mixed after the Reserve Bank of India delivered its first monetary policy of 2021. The central bank kept the repo rate unchanged at 4 percent and the stance 'accommodative', in the first policy after Budget 2021. It projected India's GDP growth rate at 10.5 percent for the fiscal year 2021-22.
    Further, the central bank sees the retail inflation for the fourth quarter of fiscal 2021 at 5.2 percent, down from the 5.8 percent forecast earlier. It added that the CPI inflation in the first half of the financial year 2022  is projected at 5.2 percent to 5 percent as against the 5.2-4.6 percent forecast earlier.
    “In the expected line, MPC kept the repo rate unchanged and maintained an accommodative stance. Though the Governor assured of more liquidity measures, an increase in the CRR can be seen as the first step towards the normalization of monetary policy. MPC also cautioned about the rise in inflation that could arise from cost-push pressures and rising petroleum prices,” said Deepthi Mathew, Economist at Geojit Financial Services.
    While the banking index rose over 2 percent after the policy announcement, the Nifty Realty index added 1.4 percent. However, Nifty Auto was trading in the red, down 1 percent post the policy.
    The PSU Bank index rallied the most, up nearly 6 percent, mainly led by a 15 percent rise in SBI post its better than expected December quarter earnings and bullish view by the brokerages.
    Among other stocks in the index, Indian Bank, Bank of India, and Central Bank of India jumped over 5 percent each, whereas, Bank of Baroda, PNB, Maharashtra Bank and Union Bank of India rose 2-3 percent in intra-day deals.
    In the auto index, Exide Industries was the only constituent trading in the green, up 1.5 percent. Other auto stocks, TVS Motor, Eicher Motors, Bharat Forge, Maruti, and Hero Moto fell between 1 percent and 3 percent.
    In the realty index, Godrej Properties rose over 5 percent while Brigade Enterprises, Oberoi Realty, Sunteck Realty and DLF were also positive, gaining up to 1.5 percent.
    Among private banks, Kotak Bank jumped the most, up over 4 percent while IndusInd Bank, IDFC First Bank, and HDFC Bank added over a percent each post the policy announcements.
     
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