New Delhi, April 8 Stocks in the real estate, auto, and banking sectors, which are sensitive to interest rates, were in high demand on Wednesday, a day when the Reserve Bank of India kept its key policy rate unchanged, adopting a wait-and-see approach as policymakers assessed the fallout from the Iran conflict on energy supplies, inflation, and growth.
A sharp rally in the broader equity market also aided buying in these stocks.
Among real estate firms, the stock of Lodha Developers surged by 8.48 per cent, Prestige Estates Projects jumped by 8.13 per cent, DLF (7.40 per cent), Phoenix Mills (7.34 per cent), Godrej Properties (6.04 per cent), Anant Raj (5.51 per cent), Sobha Ltd (4.98 per cent), Oberoi Realty (4.84 per cent), and Brigade Enterprises Ltd (3.89 per cent) on the BSE.
The real estate index jumped by 6.76 per cent to close at 5,794.85.
Among auto stocks, Ashok Leyland rallied by 12.65 per cent, Tata Motors Passenger Vehicles (8.55 per cent), Mahindra & Mahindra (6.79 per cent), TVS Motor (6.59 per cent), Maruti (6.27 per cent), Hero MotoCorp (4.67 per cent), Hyundai Motor India (4.24 per cent), and Bajaj Auto (3.50 per cent).
The BSE auto index ended 6.55 per cent higher at 57,355.47.
Among the bankex constituents, shares of AU Small Finance Bank zoomed by 9 per cent, Canara Bank rallied by 7.45 per cent, Bank of Baroda (6.96 per cent), IndusInd Bank (6.65 per cent), Axis Bank (6.56 per cent), Punjab National Bank (6.31 per cent), HDFC Bank (5.71 per cent), ICICI Bank (5.06 per cent), Kotak Mahindra Bank (4.77 per cent), and State Bank of India (2.99 per cent).
The BSE Bankex index jumped by 5.72 per cent to end at 62,701.68.
Rallying for the fifth day in a row, the 30-share BSE Sensex jumped by 2,946.32 points or 3.95 per cent to close at 77,562.90, registering its best trading day in five years.
The RBI's stance of maintaining status quo has further supported the financial sector, said Vinod Nair, Head of Research, Geojit Investments Limited.
The six-member Monetary Policy Committee voted unanimously to keep the benchmark repurchase (repo) rate at 5.25 per cent, citing heightened uncertainty after the West Asia conflict drove crude prices sharply higher, weakened the rupee, and disrupted trade flows.
The RBI's policy stance remained neutral.
"The Reserve Bank of India's decision to maintain status quo on rates with a neutral stance was perceived as supportive for equities," said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Stable interest rates on home loans, coupled with strong end-user demand, will help real estate developers to sustain sales momentum, said realtors' bodies CREDAI and NAREDCO on Wednesday, while hailing the RBI's decision to keep the repo rate unchanged.
CREDAI President Shekhar Patel said, "We view the RBI's decision to maintain status quo on the repo rate as a balanced and prudent approach, particularly against the backdrop of ongoing global geopolitical tensions and their cascading impact on inflation, supply chains, and capital flows."
While the domestic economy continues to demonstrate resilience, these external uncertainties necessitate a calibrated policy stance, he added.
"A stable interest rate environment provides much-needed visibility to both developers and homebuyers, helping sustain demand momentum across housing segments," Patel said.
NAREDCO Chairman Niranjan Hiranandani too welcomed the decision.
"While global uncertainties and input cost pressures may pose short-term challenges, the sector continues to benefit from strong domestic fundamentals," he added.