Bank, realty, auto stocks extend fall; plunge up to 9%

New Delhi: Rate sensitive stocks like banking, realty and auto continued their fall for the second straight session, plunging by up to 9 percent, after the RBI policy announcement failed to enthuse investors.

Shares of Punjab National Bank dropped 5.98 percent, Bank of Baroda declined 3.16 percent, Yes Bank lost 2.42 percent, State Bank of India (2.24 percent), AXIS Bank (2.01 percent) and ICICI Bank (1.99 percent) on BSE.

Also Federal Bank fell by 1.52 percent, Kotak Mahindra Bank (1.32 percent), HDFC Bank (1.04 percent) and Indusind Bank (0.86 percent).

The BSE bank index fell by 1.66 percent to end at 27,885.86.

Realty stocks also saw heavy selling, with Unitech tumbling 8.88 percent, HDIL (2.80 percent), Phoenix Mills Ltd (1.78 percent), DLF (1.48 percent), Godrej Properties (1.28 percent) and Sobha Ltd (0.86 percent).

The BSE realty index declined by 0.73 percent to end at 2,166.93.

From the auto pack, Tata Motors dipped 1.74 percent, Maruti Suzuki India (0.98 percent) and TVS Motor (0.28 percent).

The BSE auto index fell by 0.66 percent to close at 24,620.51.

"Disappointed by yesterday's decision of the central bank, interest rate sensitive stocks were under pressure today. If RBI has shifted its stance from neutral to accommodative the extent of the impact could have been minimal," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

After a 10-month pause, the Reserve Bank yesterday cut benchmark lending rate by 0.25 percent to over 6-year low.

The repo rate, at which RBI lends to banks, is now down to 6 percent.

The 30-share BSE benchmark index ended the day with a loss of 238.86 points at 32,237.88.