Banking stocks tank as RBI holds policy rates; auto, realty stocks gain
NEW DELHI: Most of the banking stocks closed lower after the Reserve Bank of India (RBI) kept key policy rate unchanged at 6.25 per cent at its sixth bimonthly policy review on Wednesday.
RBI Governor Urjit Patel said there is still scope for bank lending rates to come down.
RBI said it would remove the cap on cash withdrawals from March 13 and raise it to Rs 50,000 per week from Rs 24,000 at present with effect from February 20.
Among the 10 stocks in the BSE Bankex, seven closed in the red with Punjab National Bank falling the most at 1.32 per cent followed by Axis Bank (down 1.04 per cent), ICICI Bank (down 0.69 per cent) and Kotak Mahindra Bank (down 0.52 per cent).
On the other hand, shares of Yes Bank, HDFC and Federal Bank closed higher by 1.03 per cent, 0.50 per cent and 0.48 per cent, respectively.
Rate-sensitive auto and realty stocks closed higher. The BSE Auto index closed 0.68 per cent up at 22,230, while the BSE Realty index settled 0.90 per cent higher at 1,487.
On the realty counter, shares of Prestige Estates, Oberoi Realty and Indiabulls Real Estate advanced 3.29 per cent, 2.11 per cent and 2.04 per cent, respectively.
In the auto space, shares of M&M, Ashok Leyland, Tata Motors and Eicher Motors closed higher by 1.57 per cent, 1.43 per cent, 1.22 per cent and 1.19 per cent, respectively.
RBI kept the repo rate unchanged at 6.25 per cent and the reverse repo rate at 5.75 per cent.
The BSE Sensex closed 45 points down at 28,289, while NSE Nifty settled 0.75 points up at 8,769.
RBI Governor Urjit Patel said there is still scope for bank lending rates to come down.
RBI said it would remove the cap on cash withdrawals from March 13 and raise it to Rs 50,000 per week from Rs 24,000 at present with effect from February 20.
Among the 10 stocks in the BSE Bankex, seven closed in the red with Punjab National Bank falling the most at 1.32 per cent followed by Axis Bank (down 1.04 per cent), ICICI Bank (down 0.69 per cent) and Kotak Mahindra Bank (down 0.52 per cent).
On the other hand, shares of Yes Bank, HDFC and Federal Bank closed higher by 1.03 per cent, 0.50 per cent and 0.48 per cent, respectively.
Rate-sensitive auto and realty stocks closed higher. The BSE Auto index closed 0.68 per cent up at 22,230, while the BSE Realty index settled 0.90 per cent higher at 1,487.
On the realty counter, shares of Prestige Estates, Oberoi Realty and Indiabulls Real Estate advanced 3.29 per cent, 2.11 per cent and 2.04 per cent, respectively.
In the auto space, shares of M&M, Ashok Leyland, Tata Motors and Eicher Motors closed higher by 1.57 per cent, 1.43 per cent, 1.22 per cent and 1.19 per cent, respectively.
RBI kept the repo rate unchanged at 6.25 per cent and the reverse repo rate at 5.75 per cent.
The BSE Sensex closed 45 points down at 28,289, while NSE Nifty settled 0.75 points up at 8,769.
