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Rate sensitive stocks tank post RBI policy; SBI, PNB down 2%

Rate sensitive sectors like banks, realty and auto, which had run-up sharply earlier today, came under selling pressure soon after the RBI policy.

ET Online|
Updated: May 03, 2013, 11.41 AM IST
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Rate sensitive sectors like banks, realty and auto, which had run-up sharply earlier today, came under selling pressure soon after the Reserve Bank of India (RBI) slashed repo rate by 25 bps.
Rate sensitive sectors like banks, realty and auto, which had run-up sharply earlier today, came under selling pressure soon after the Reserve Bank of India (RBI) slashed repo rate by 25 bps.
NEW DELHI: Rate sensitive sectors like banks, realty and auto, which had run-up sharply earlier today, came under selling pressure soon after the Reserve Bank of India (RBI) slashed repo rate by 25 bps.

Cash Reserve ration (CRR) was maintained at 4 per cent.

The Sensex has already rallied 1500 points over the last three weeks and rate cut expectations were very strong, with more than 95 per cent of economists expecting a 25 bps repo rate-cut.

Most economists in an ET Now poll had already factored in a 25 basis points rate cut.

“The RBI rate cut was there in the present prices and the positives had already been built into the system. The private sector banks and NBFCS have come up with their results, which have more than met analyst expectations,” said Vishal Jajoo, Senior Research Analyst at Nirmal Bang Securities.

“Scope for further monetary easing depends on inflation, CAD and fiscal gap. This is a function of various elements, mainly key commodity prices like gold and crude oil,” he added.

At 11:30 a.m., the S&P BSE Sensex was down 0.15 per cent, the S&P BSE Bankex declined 1.7 per cent, the S&P BSE Realty Index was trading 1.2 per cent lower and the S&P BSE Auto Index declined 1.2 per cent.

The S&P BSE Banking Index was trading 1.7 per cent, led by losses in SBI was trading 2.4 per cent lower at Rs 2242, ICICI Bank plunged 1.6 per cent to Rs 1153 and PNB dropped 2.2 per cent to Rs 751.

The S&P BSE Realty Index was down 1.2 per cent, led by losses in HDIL, which was down 2.85 per cent at Rs 52.80, DLF plunged 1.76 per cent to Rs 235 and Godrej Properties dropped 1.9 per cent to Rs 617.50.

The S&P BSE Auto Index recovered from day’s low and was trading 0.65 per cent lower, led by losses in Tata Motors plunged 1.8 per cent to Rs 291, Bajaj Auto dropped 1.5 per cent to Rs 1380 and Ashok Leyland dropped 1.1 per cent to Rs 22.70.

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