Interest rate sensitive bank, realty and auto stocks ended on a mixed note on Friday, on a day when the RBI raised the key interest rate by 50 basis points.
Among bank stocks, ICICI Bank climbed 2.26 per cent, AU Small Finance Bank advanced 1.66 per cent, Axis Bank (0.90 per cent) and Federal Bank (0.88 per cent).
However, Bandhan Bank declined 1.70 per cent, IndusInd Bank fell 1.30 per cent, Bank Of Baroda (0.59 per cent), State Bank of India (0.42 per cent), HDFC Bank (0.27 per cent) and Kotak Mahindra Bank (0.08 per cent).
The BSE bank index ended 0.47 per cent higher at 43,550.81.
Home, auto and other loan EMIs are set to rise further after the RBI on Friday raised the key interest rate by 50 basis points, the third straight increase since May in an effort to cool stubbornly high inflation.
“RBI hiking repo rate by 50 bps is not surprising… Despite rise in interest rates RBI retaining the projection of growth rate at 7.2 per cent should be the key takeaway for market participants,” Siddarth Bhamre, Head of Research at Religare Broking Limited, said.
RBI expects India’s GDP growth to remain strong at 7.2 per cent in FY23.
From auto pack, TVS Motor Company advanced 1.46 per cent, followed by Escorts Kubota (0.50 per cent), MRF (0.19 per cent) and Bajaj Auto (0.03 per cent).
Mahindra & Mahindra fell by 2.04 per cent, Eicher Motors (1.81 per cent), Maruti (1.50 per cent), Hero MotoCorp (1.33 per cent), Tata Motors (0.70 per cent) and Ashok Leyland (0.69 per cent).
The BSE auto index ended 1.12 per cent lower at 29,365.58.
The 30-share BSE Sensex ended 89.13 points or 0.15 per cent higher at 58,387.93 after facing volatility during the fag-end of trade.
Among realty counters, The Phoenix Mills climbed 1.62 per cent, Indiabulls Real Estate (0.84 per cent), Sobha Limited (0.50 per cent) and Prestige Estates Projects (0.20 per cent).
The laggards were Sunteck Realty which dipped 1.27 per cent, Godrej Properties declined 1.25 per cent, Brigade Enterprises (0.14 per cent), Oberoi Realty (0.13 per cent) and DLF (0.01 per cent).
The realty index advanced 0.23 per cent to 3,485.95.
“The 50 bps rate hike by the Reserve Bank of India today is broadly in line with the consensus expectations,” Sujan Hajra – Chief Economist and Executive Director of Anand Rathi Shares & Stock Brokers, said.