Interest-sensitive banking, real estate and auto stocks ended on a mixed note Friday, on a day when the RBI raised the key interest rate by 50 basis points.
Of banking shares, ICICI Bank climbed 2.26 percent, AU Small Finance Bank 1.66 percent, Axis Bank (0.90 percent) and Federal Bank (0.88 percent).
However, Bandhan Bank fell 1.70 percent, IndusInd Bank fell 1.30 percent, Bank Of Baroda (0.59 percent), State Bank of India (0.42 percent), HDFC Bank (0.27 percent) and Kotak Mahindra Bank (0.08 percent). ).
The BSE banking index ended 0.47 percent higher at 43,550.81.
EMIs for homes, autos and other loans are set to rise further after the RBI on Friday raised key interest rates by 50 basis points, the third rise in a row since May in an attempt to cool stubbornly high inflation.
“RBI raising the repo rate by 50 bps is not surprising… Despite an increase in interest rates, RBI should be the main starting point for market participants to maintain the forecast of a growth rate of 7.2 percent,” Siddarth Bhamre, Head of Research at Religare Broking Limited, said.
RBI expects India’s GDP growth to remain strong in FY23 at 7.2 percent.
TVS Motor Company advanced 1.46 percent of autopack, followed by Escorts Kubota (0.50 percent), MRF (0.19 percent) and Bajaj Auto (0.03 percent).
Mahindra & Mahindra were down 2.04 percent, Eicher Motors (1.81 percent), Maruti (1.50 percent), Hero MotoCorp (1.33 percent), Tata Motors (0.70 percent) and Ashok Leyland (0. 69 percent).
The BSE auto index ended 1.12 percent lower at 29,365.58.
The 30-share BSE Sensex finished 89.13 points or 0.15 percent higher at 58,387.93 after facing volatility during the close of trading.
Among the real estate counters, The Phoenix Mills rose 1.62 percent, Indiabulls Real Estate (0.84 percent), Sobha Limited (0.50 percent) and Prestige Estates Projects (0.20 percent).
The laggards were Sunteck Realty which fell 1.27 percent, Godrej Properties fell 1.25 percent, Brigade Enterprises (0.14 percent), Oberoi Realty (0.13 percent) and DLF (0.01 percent).
The real estate index rose 0.23% to 3,485.95.
“The Reserve Bank of India’s 50bp rate hike today is broadly in line with consensus expectations,” said Sujan Hajra, chief economist and executive director of Anand Rathi Shares & Stock Brokers.