Interest rate sensitive bank, realty and auto stocks ended on a mixed note on Friday, the day the RBI hiked the key interest rate by 50 basis points.
ICICI Bank rose 2.26 per cent, AU Small Finance Bank 1.66 per cent, Axis Bank (0.90 per cent) and Federal Bank (0.88 per cent) in bank stocks.
However, Bandhan Bank fell 1.70 per cent, IndusInd Bank 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.
After further increase in home, auto and other loan EMIs, the RBI on Friday hiked the key interest rate by 50 basis points, the third straight hike since May in an effort to pacify high inflation.
Siddharth Bhamre, Head of Research, Religare Broking Ltd., said, “The 50 bps hike in the repo rate in RBI is not surprising.
RBI expects India’s GDP growth to remain strong at 7.2 per cent in FY13.
From the auto pack, TVS Motor Company gained 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 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 closed 89.13 points or 0.15 per cent higher at 58,387.93, after facing volatility during the fag-end of trading.
Among realty counters, Phoenix Mills rose 1.62 per cent, Indiabulls Real Estate (0.84 per cent), Shobha Ltd (0.50 per cent) and Prestige Estates Projects (0.20 per cent).
Among the laggards, Suntech Realty fell 1.27 per cent, Godrej Properties by 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 rose 0.23 per cent to 3,485.95.
“The 50 bps rate hike by the Reserve Bank of India today is in line with the consensus expectations,” said Sujan Hazra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers.