Interest rate sensitive stocks — banking, realty and auto — continued to fall for the second straight session, losing up to 3 per cent, as the RBI policy action failed to enthuse investors.
Among bank stocks, PNB was trading lower by 2.93 per cent, YES Bank lost 1.90 per cent, ICICI Bank slipped 1.66 per cent, Axis Bank (1.55 per cent), SBI (1.51 per cent), Bank of Baroda (1.38 per cent) and Kotak Mahindra Bank (1.08 per cent) on BSE.
Led by the losses in these scrips, the BSE bank index was quoting 1.17 per cent down at 28,025.60 during the afternoon trade.
From realty pack,
Auto stocks also faced selling pressure, with Tata Motors falling 1.38 per cent, Maruti Suzuki India (0.73 per cent) and TVS Motor Company (0.28 per cent). The BSE auto index was quoting at 24,725.90, down 0.23 per cent.
After a 10-month pause, the Reserve Bank had yesterday cut the benchmark lending rate by 0.25 per cent to over 6-year low. The repo rate, at which RBI lends to banks, is now down to 6 per cent.