Rate sensitive stocks from sectors including bank, realty and auto were all trading with gains after the Reserve Bank of India in its sixth bi-monthly policy review meet today lowered repo rate by 25 basis points to 6.25%. The rate cut has come after a long gap of 17 months, with the last rate cut implemented in August 2017.
The RBI's monetary policy committee also changed policy stance from 'calibrated tightening' earlier to 'neutral'. This was the first policy review by RBI Governor Shakitkanta Das, who took over the position in the second week of December last year.
The Nifty Bank index traded with gains of 0.19% or 52.70 points at 27,455.05, while the Nifty Realty index is also up by 0.42% at 226.05 at around 1:14 pm. Also, the auto index gained 1.79% or 153.25 points to 8720.65.
Top gainers in the bank index include stocks such as IDFC Bank (up 5.76%), Federal Bank (up 1.40% at Rs. 86.65), RBL Bank (up 0.53%, reaching an intra-day high of Rs. 594.60 on the BSE) and SBI (up 0.38%).
From the realty pack, stocks that gained after RBI's rate cut include shares of Indiabulls Real Estate, Godrej Properties and Sunteck Realty and Oberoi Realty.
Some of the top gainers in the Nifty Auto index include shares of TVS Motor Conpany that surged as much as 4.66%, Ashok Leyland (up 5.88%) , Bajaj Auto etc.
At around 1:30 pm, the benchmark 30 stock index Sensex was up 0.19% or 69.52 points at 37044.75 while the Nifty gained (+0.15%) or 16.17 points to 11079.15.