Interest-rate sensitive stocks gain as RBI hikes key rate
Oct 29 2013 , Mumbai
Among the banking pack, ICICI Bank surged 6 per cent, SBI rose by 3.65 per cent, HDFC Bank (2.82 per cent), PNB (4.61 per cent), Axis Bank (5.12 per cent), Yes Bank Ltd (6.91 per cent).
Led by the gains in these stocks, the BSE banking index gained 4.35 per cent to settle at 12,831.06, becoming the best performer among the 13 sectoral indices.
"Banking stocks were on fire and the rise was seen in both private and public sector banks. Today's movement in bank stocks does show promise for further upside," said Milan Bavishi, Head Research, Inventure Growth and Securities.
From the realty space, DLF rose by 2.49 per cent, Unitech (3.89 per cent), Indiabulls Real Estate (5.71 per cent), Godrej Properties (1.58 per cent) and Sobha Developers (0.33 per cent).
Following the gains in these stocks, the BSE realty index climbed 2.44 per cent to 1,327.65.
Auto stocks also saw good buying, with Maruti Suzuki India soaring by 8.19 per cent, Mahindra & Mahindra (3.77 per cent), Hero MotoCorp Ltd (3.25 per cent), Tata Motors (1.11 per cent) and Bajaj Auto (1.10 per cent).
Tracking rally in these stocks, the BSE auto index surged 2.43 per cent to 12,077.03.
"Markets have also taken the move positively and considering the strength of the markets currently and overall economic cycle, the markets are coming out of a contraction phase and definitely with the values the sectors like PSU banks and capital goods sectors are offering, things definitely do not look much on the darker side and next 6-12 months looks good for the overall economy," said Vivek Gupta, Director Research, CapitalVia Global Research Limited.
Housing, auto and corporate loans may become expensive with the Reserve Bank today hiking the key lending rate by 0.25 per cent to contain inflation in continuation of its hard-line stance.