Mumbai: Interest-rate sensitive bank, realty and auto stocks on Friday fell by up to over 3 percent, after the Reserve Bank said assessment of growth-inflation dynamics limits scope for further easing of policy rate.
Among the worst hit were BSE realty index that saw blue-chips like DLF fell by 2.01 percent, HDIL lost 3.22 percent, Prestige Estates (2.5 percent), Godrej Properties (2.15 percent) and Unitech (2.11 percent).
Tracking weakness in these stock, the BSE realty index fell by 1.75 percent to 1,895.59, becoming the biggest loser among the 13 sectoral indices.
From the banking space, shares of SBI were down 2.48 percent, PNB (2.28 percent), ICICI Bank (1.60 percent), Canara Bank (2.68 percent), HDFC Bank (0.94 percent).
The BSE banking index slipped 1.62 percent to 14,296.17. "RBI has again chosen to be cautious than being completely dovish. A 0.25 percent cut was already factored in by markets, while a CRR cut could have cheered up investors. Subbarao's statement that there is 'very limited room' for further easing will play spoilsport for markets ahead.
"The policy clearly shows that central bank is unlikely to cut rates aggressively this fiscal, if inflation and CAD risks remain," said Vikas Jain, Founder, Aditya Trading Solutions (ATS).
Auto stocks too saw selling with Bajaj Auto trading 2.12 percent down, Tata Motors (1.69 percent), Ashok Leyland (1.09 percent).
Led by the weakness in these counters, the BSE auto index lost 0.89 percent to 10,899. Sticking to its cautious stance, the Reserve Bank on Friday cut the key interest rate by just 0.25 percent to 7.25 percent and kept the liquidity enhancing cash reserve requirement unchanged.
The RBI said that assessment of growth-inflation dynamics limits scope for further easing of policy rate. In the stock market, the BSE benchmark Sensex was trading flat 9.15 points down at 19,726.62 in afternoon trade.


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