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Markets Cheer RBI Pause: Rate-sensitive sectors jump up to 7%; realty, auto, financials lead rally
Written By Abhay Shukla
Published: | Updated:
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Markets Cheer RBI Pause: Rate-sensitive sectors jump up to 7 per cent; realty, auto, financials lead rally
Rate-sensitive sectors led the market rally after the RBI kept the repo rate unchanged and maintained a neutral stance.
Financials, auto, and realty stocks saw strong and broad-based buying. The move was driven by expectations of stable borrowing costs and improving demand.
Realty stocks lead the rally
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The Nifty Reality index jumped 6.72 per cent to 745.55. Realty emerged as the top-performing rate-sensitive segment.
Among key stocks, Prestige Estates Projects rose 9.66 per cent to Rs 1,340.10. Phoenix Mills gained 7.04 per cent to Rs 1,709.40. DLF moved up 6.35 per cent to Rs 568.
Other major players also saw steady gains. Godrej Properties rose 5.87 per cent to Rs 1,699.20, while Sobha gained 5.89 per cent to Rs 1,301.10.
Mid-sized developers participated actively. Brigade Enterprises advanced 4.87 per cent, Sunteck Realty rose 6.65 per cent, and Embassy Developments gained 4.98 per cent.
| Company | Market Cap (Rs Cr) | Market Price (Rs) | Change | Sector |
|---|---|---|---|---|
| DLF | 1,32,120 | 568.00 | +6.35% | Realty |
| Phoenix Mills | 57,037 | 1,709.40 | +7.04% | Realty |
| Oberoi Realty | 56,729 | 1,629.60 | +4.44% | Realty |
| Prestige Estates Projects | 52,659 | 1,340.10 | +9.66% | Realty |
| Godrej Properties | 48,360 | 1,699.20 | +5.87% | Realty |
| Brigade Enterprises | 16,897 | 725.15 | +4.87% | Realty |
| Sobha | 13,155 | 1,301.10 | +5.89% | Realty |
| Embassy Developments | 6,649 | 50.34 | +4.98% | Realty |
| Sunteck Realty | 4,412 | 320.85 | +6.65% | Realty |
| Hemisphere Properties India | 3,396 | 123.02 | +3.33% | Realty |
Auto stocks see strong buying
The Nifty Auto index surged 6.58 per cent to 25,977.75.
Auto majors led the rally. Mahindra & Mahindra gained 7.15 per cent to Rs 3,221.70. Maruti Suzuki India rose 6.29 per cent to Rs 13,603.
Eicher Motors climbed 6.15 per cent, while TVS Motor Company gained 6.34 per cent. Hero MotoCorp added 5.77 per cent.
Commercial vehicle maker Ashok Leyland stood out with a sharp 11.77 per cent jump.
Auto ancillary stocks also saw strong traction. Samvardhana Motherson rose 8.30 per cent, Bharat Forge gained 6.69 per cent, and UNO Minda climbed 6.38 per cent.
| Company | Market Cap (Rs Cr) | Market Price (Rs) | Change | Sector |
|---|---|---|---|---|
| Maruti Suzuki India | 4,02,429 | 13,603.00 | +6.29% | Automobile |
| Mahindra & Mahindra | 3,73,879 | 3,221.70 | +7.15% | Automobile |
| Bajaj Auto | 2,52,866 | 9,448.00 | +4.40% | Automobile |
| Eicher Motors | 1,81,268 | 7,011.50 | +6.15% | Automobile |
| TVS Motor Company | 1,64,812 | 3,690.50 | +6.34% | Automobile |
| Samvardhana Motherson | 1,14,410 | 117.44 | +8.30% | Auto Ancillaries |
| Tata Motors (Passenger Vehicles) | 1,13,657 | 331.30 | +7.32% | Automobile |
| Hero MotoCorp | 1,01,050 | 5,342.50 | +5.77% | Automobile |
| Bosch | 98,565 | 34,880.00 | +4.29% | Auto Ancillaries |
| Ashok Leyland | 89,841 | 170.93 | +11.77% | Automobile |
| Bharat Forge | 79,881 | 1,783.10 | +6.69% | Castings, Forgings & Fasteners |
| UNO Minda | 58,949 | 1,086.60 | +6.38% | Auto Ancillaries |
| Tube Investments of India | 50,096 | 2,732.60 | +5.58% | Capital Goods |
| Sona BLW Precision Forgings | 32,031 | 543.05 | +5.42% | Auto Ancillaries |
| Exide Industries | 25,258 | 313.70 | +5.53% | Auto Ancillaries |
Financials remain strong
The Nifty Financial Services index climbed 4.94 per cent to 25,905.60.
Banking stocks led the move. HDFC Bank rose 5.22 per cent, ICICI Bank gained 4.94 per cent, and State Bank of India advanced 4.30 per cent.
NBFCs outperformed in several cases. Shriram Finance surged 7.95 per cent, while Bajaj Finance gained 6.08 per cent.
Among others, Cholamandalam Investment rose 7.92 per cent and Muthoot Finance gained 6.36 per cent.
Insurance stocks also participated. HDFC Life Insurance rose 3.54 per cent, while SBI Life Insurance gained 2.65 per cent.
| Company | Market Cap (Rs Cr) | Market Price (Rs) | Change | Sector |
|---|---|---|---|---|
| HDFC Bank | 11,88,445 | 812.30 | +5.22% | Banks |
| State Bank of India | 9,51,031 | 1,074.70 | +4.30% | Banks |
| ICICI Bank | 8,92,387 | 1,307.00 | +4.94% | Banks |
| Bajaj Finance | 5,32,209 | 907.10 | +6.08% | Finance |
| Axis Bank | 3,88,739 | 1,317.60 | +5.40% | Banks |
| Kotak Mahindra Bank | 3,60,758 | 374.10 | +3.07% | Banks |
| Bajaj Finserv | 2,69,773 | 1,780.60 | +5.71% | Finance |
| SBI Life Insurance | 1,84,701 | 1,890.20 | +2.65% | Insurance |
| Shriram Finance | 1,75,089 | 1,004.65 | +7.95% | Finance |
| JIO Financial Services | 1,49,489 | 244.56 | +3.92% | Finance |
| Power Finance Corporation | 1,34,364 | 415.40 | +1.96% | Finance |
| Muthoot Finance | 1,30,146 | 3,447.50 | +6.36% | Finance |
| HDFC Life Insurance | 1,25,510 | 602.30 | +3.54% | Insurance |
| Cholamandalam Investment | 1,20,427 | 1,527.10 | +7.92% | Finance |
| BSE | 1,20,186 | 3,158.70 | +7.05% | Financial Services |
| REC Limited | 86,765 | 337.95 | +2.61% | Finance |
| ICICI Lombard General Insurance | 86,127 | 1,766.30 | +2.30% | Insurance |
| SBI Cards | 60,860 | 667.45 | +4.35% | Finance |
| Max Financial Services | 51,465 | 1,569.00 | +5.22% | Miscellaneous |
| LIC Housing Finance | 28,191 | 523.90 | +2.15% | Finance |
Positive announcements for banks in RBI policy
CRAR norms under review
- Reserve Bank of India may revise CRAR norms
- Rules for CRAR calculation to be reviewed
- CRAR = Capital to Risk-weighted Assets Ratio
- Banks currently include quarterly net profit in CRAR calculation
- NPA provisioning norms may be eased
- Relaxation in NPA provisioning can help keep profits stable
- Possible steps to maintain stability in capital adequacy ratios
- Supply chain issues impacting payments and Letters of Credit (LoCs)
Guidelines review
- Investment Fluctuation Reserve (IFR) guidelines under review
- Banks create reserves against investment and market value volatility
- These act as an additional buffer
- Relief likely given current operational challenges
Benefits for banks
- Bank profits likely to remain stable
- Capital reserves may see better stability
- Concerns around MSME loan books could ease
Benchmark indices also gain
Following the sectoral rally, benchmark indices moved sharply higher.
The Sensex opened with gains of nearly 3.5 per cent. The Nifty also advanced strongly and reclaimed the 23,800 mark.
The broader market remained positive, supported by strong participation across sectors.
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