Realty,bank stocks surge on rate hope

“Expectation of rate cut generally triggers buying interest in rate sensitives such as banks,autos and even realty,” Inventure Growth & Securities Head (Research) Milan Bavishi said.

A lower lending rate is expected to boost sales in the real estate and automobile space,analysts said.

From the realty space,Godrej Properties surged 5.31 per cent,HDIL gained 3.77 per cent,Unitech rose 3.53 per cent and DLF went up by 2.2 per cent.

Following the gains in these stocks,the BSE realty index settled 2.01 per cent higher at 1,666.83.

“The dismal IIP numbers are likely to put pressure on RBI for policy rate cuts in its meeting to be held on June 18,” Sharmila Joshi,Head (Equity) at Fairwealth Securities,said.

Among financial stocks,SBI was up 1.96 per cent,HDFC Bank rose by 1.85 per cent,ICICI Bank gained 1.61 per cent,Canara Bank rallied 3.99 per cent and PNB jumped 4.04 per cent.

Led by the surge in these stocks,the BSE bankex index closed for the day 1.90 per cent up at 11,680.20.

From the auto pack,Maruti Suzuki was the top gainer which ended 3.48 per cent higher,Tata Motors climbed 3.14 per cent and Mahindra & Mahindra rose by 1.87 per cent.

The BSE auto index was up 1.76 per cent at 9,301.91. The year-on-year industrial production growth rate stood at a mere 0.1 per cent in April,increasing chances that the Reserve Bank may cut interest rates next week to boost the sagging economy.

Meanwhile,the BSE benchmark Sensex ended at 16,862.80,up 194.79 points.

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