Rate-Sensitive Stocks Soar As RBI Keeps Rates Unchanged

The Reserve Bank retained the repo rate at 4 per cent and reverse repo rate at 3.35 per cent, and asserted that it will continue with an accomodative stance as long as necessary

The rate-sensitive banking, auto and realty stocks gained in a strong market after the Reserve Bank kept the policy rates unchanged. The central bank retained the repo rate at 4 per cent and reverse repo rate at 3.35 per cent, and asserted that the bank will continue with an accomodative stance as long as necessary to mitigate the impact of the Covid-19 pandemic. The central bank had last cut its policy rates on May 22, 2020, in an off-policy cycle, when India was in the caught in the first wave of the dreaded virus spread. Among the banking names, State Bank of India, ICICI Bank, IndusInd Bank, RBL Bank, Bandhan Bank and Kotak Mahindra Bank have gained up to 2 per cent each on the BSE. In the auto space, Bajaj Auto, Hero Motocorp, Maruti Suzuki, Ashok Leyland, Escorts and Ashok Leyland were among the top performers, registering gains of up to 2 per cent each on the BSE.