Interest Rate Sensitive Stocks Gain After RBI Hikes Repo Rate

On expected line, RBI's MPC in its second bi-monthly policy meet increased key policy repo rate to 4.9%. This is to tackle primarily with inflationary woes.

On the development bank Nifty is trading 370 points or over 1% higher, likewise, there is traction in Nifty Realty which last at the time of writing this copy was up by over 2 percent.

There have been announced 3 major steps for the housing and realty space. Individual housing loans by cooperative banks, for the same, there is announced an hike in limits. "Accordingly, the limits for Tier I /Tier II UCBs shall stand revised from ₹30 lakh/ ₹70 lakh to ₹60 lakh/ ₹140 lakh, respectively. As regards RCBs, the limits shall increase from ₹20 lakh to ₹50 lakh for RCBs with assessed net worth less than ₹100 crore; and from ₹30 lakh to ₹75 lakh for other RCBs. A detailed circular will be issued separately", said the RBI's Statement on Development and Regulatory Policies.

Also Rural Cooperative Banks have been allowed to lend to commercial real estate.

Last from the Nifty Realty major gainers have been DLF, Oberoi Realty, Lodha and Sobha that gained over 2% in trade.