Realty, bank stocks surge on rate cut hopes
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Realty, bank stocks surge on rate cut hopes

Last Updated: Thursday, March 14, 2013, 20:34
 
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Realty, bank stocks surge on rate cut hopes
Mumbai: Interest rate sensitive realty and banking stocks on Thursday gained as much as 8 percent as core inflation in February fell below 4 percent mark for the first time in nearly 3 years raising hopes the RBI would ease rates next week.

Shares of Prestige Estates surged 7.97 percent to Rs 176.75, while Unitech gained 6.09 percent to Rs 29.60 on the BSE.

Among others, Indiabulls Real Estate rose by 3.21 percent, HDIL (2.73 percent) and DLF (1.50 percent).

Led by gains in these stocks, the BSE realty index ended 2.18 percent higher at 2,107.61.

From the banking space, SBI was up 3.51 percent, Canara Bank (3.31 percent), Bank of India (2.41 percent), Union Bank (2.38 percent) and PNB (1.10 percent).

Following the upsurge in these stocks, the BSE banking index closed at 13,796.47, up 2.08 percent.

"Based on inflation figures, market participants are anticipating a higher probability for rate cut in March 19 RBI policy meet. This shall induce further liquidity into the system and thus rate-sensitive sectors surged from lower levels and pared most of their week's losses," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio.

After touching a three-year low in January, inflation increased marginally to 6.84 percent in February driven by costlier food items and petrol but the rise may not dampen hopes of rate cut by RBI as non-food inflation has moderated.

In the broader market, the BSE benchmark Sensex ended at 19570.44, up 1.07 percent.

PTI



First Published: Thursday, March 14, 2013, 20:16


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