Rate-sensitive banks, real estate and auto stocks ended mixed on Friday, the day the Reserve Bank of India raised its key interest rate by 50 basis points.
Among banks, ICICI Bank rose 2.26%, AU Small Finance Bank rose 1.66%, Axis Bank (0.90%) and Commonwealth Bank (0.88%).
However, Bandhan Bank lost 1.70%, IndusInd Bank lost 1.30%, Bank Of Baroda (0.59%), State Bank of India (0.42%), HDFC Bank (0.27%) and Kotak Mahindra Bank (0.08%).
The BSE Banks index closed up 0.47% at 43,550.81.
Household, auto and other loan EMIs are set to rise further after the Reserve Bank of India raised key interest rates by 50 basis points on Friday, the third straight hike since May, in an effort to cool stubbornly high inflation.
Siddarth Bhamre, head of research at Religare Broking Limited, “It is not surprising that the RBI raised the repo rate by 50 basis points… Despite the rate hike, the RBI has maintained its growth forecast at 7.2%, which should be a key takeaway for market participants.” , Say.
RBI expects India’s GDP growth to remain robust at 7.2% in FY23.
In automotive packaging, TVS Motor Company rose 1.46%, followed by Escots Kubota (0.50%), MRF (0.19%) and Bajaj Auto (0.03%).
Mahindra & Mahindra fell 2.04%, Eicher Motors (1.81%), Maruti (1.50%), Hero MotoCorp (1.33%), Tata Motors (0.70%) and Ashok Leyland (0.69%).
The BSE Auto Index closed down 1.12% at 29,365.58.
The 30-share BSE Sensex closed up 89.13 points, or 0.15%, at 58,387.93 after facing volatility during late trade.
Among property stocks, The Phoenix Mills rose 1.62%, Indiabulls Real Estate (0.84%), Sobha Limited (0.50%) and Prestige Estates Projects (0.20%).
The laggards were Sunteck Realty, down 1.27%, Godrej Properties, down 1.25%, Brigade Enterprises (0.14%), Oberoi Realty (0.13%) and DLF (0.01%).
The real estate index rose 0.23% to 3,485.95.
“Today’s RBI hike of 50 basis points is broadly in line with consensus expectations,” said Sujan Hajra, chief economist and executive director at Anand Rathi Shares & Stock Brokers.