Rate-sensitive Stocks Trade Higher After RBI's MPC Maintains Status Quo

After the apex bank Reserve Bank of India maintained status quo in its bi-monthly monetary policy committee outcome on August 6, rate sensitive stocks have been trading firm The repo rate continues to be at 4 percent and the reverse repo rate at 3.35 percent. Furthermore, the MPC has continued with the "accommodative" policy stance.

At the time of writing this copy, auto index traded with gains of 0.65% led by gains in some of the counters such as Maruti, Amara Raja Batteries, while Nifty Bank and Nifty Realty traded with gains of 0.05% and 0.17%, respectively.

From the banking pack, stocks showing uptrend include IndusInd Bank, IDFC First Bank, AU Small Finance Bank, Federal Bank and PNB, up between 0.4-2.5%.

Realty index got support from scrips such as Hemisphere Properties, Indiabulls Real Estate, Prestige Estates Projects, Phoenix among others, while realty stocks seeing down in trade included stocks like Oberoi Realty, Sobha, DLF.

"Today, we are in a much better position than at the time of the MPC's meeting in June 2021. As the second wave of the pandemic ebbs, containment eases and we slowly build back, vaccine manufacturing and administration are steadily rising. Yet the need of the hour is not to drop our guard and to remain vigilant against any possibility of a third wave, especially in the background of rising infections in certain parts of the country", said RBI governor Shaktikanta Das.

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