- News
- Business News
- India Business News
- RBI effect: Banking, realty stocks take a beating
Trending
This story is from January 30, 2008
RBI effect: Banking, realty stocks take a beating
Banking and realty stocks bore the brunt of the Reserve Bank's decision to keep its key interest rates unchanged.
However the auto index, which is also rate sensitive, closed flat.
ICICI Bank, SBI and HDFC Bank were the top three losers on the Sensex dropping by almost 4% each. Bajaj Auto, DLF, and Maruti were also laggards.
So does RBI's decision spell bad news for these sectors, especially over the long-term? Market players have been bullish on banking stocks with the sector featuring on many of their ‘must-buy' lists for 2008. This was largely driven by expectations that interest rates have peaked and will now start to head lower, driving up demand for credit.
‘‘RBI statements are cautious to neutral and there is scope of cut in the rate going forward. Most of the rate-sensitive sectors, including those that went up on Monday anticipating a cut, have given up their gains during the session,'' said Sunil Godhwani, CEO, Religare. But this has not dampened his outlook for the sector.
‘‘Investors will be better off if buying decisions are based on fundamentals and not on any event. We continue to like banks as their fundamentals remain strong irrespective of a rate cut,'' he added.
End of Article
FOLLOW US ON SOCIAL MEDIA
Photostories
Hot Picks
TOP TRENDING
Trending Stories
In Business
Entire Website
- Will banks open only for 5 days a week? Here’s what you should know about IBA’s proposal
- India set to be third largest economy, says S&P Global
- Dalal Street bull run continues! BSE Sensex crosses 69,000 for the first time; Nifty above 20,800
- Byju’s reduces notice period for employees as troubles mount
- Sensex surges over 900 points, Nifty above 20,550 as BJP state election wins bolster Modi's Lok Sabha 2024 prospects
- UltraTech to buy building materials business of Kesoram in 7,600 crore deal
- Tata Technologies stock debuts at a bumper 140% premium; share price at Rs 1200 on BSE
- Tata Technologies share allotment: How to check IPO allotment status, listing date, GMP
- BSE m-cap rides rally in Adani stocks, tops $4 trillion
- Charlie Munger, who helped Warren Buffett build Berkshire, dies at 99
- 'Working for country': Vikash Yadav's family rejects Pannun murder plot allegations
- 2 labourers killed, 2 injured in terrorist attack in J&K's Ganderbal
- Why trying to kill Khalistani militants abroad is a bad idea
- Israel to take legal action against Macron over naval trade show ban
- Karwa Chauth 2024 Moon rise time live
- Brain dead man comes back to life as doctors prepared to remove his heart
- Explained In 9 charts: Why Indians are UK’s biggest success story
- Wipro’s Azim Premji to Infosys’ Narayana Murthy: 5 richest people in B'luru
- T20 WC Final Live: Wolvaardt, Brits off to solid start vs NZ
- 'Don't get popped': Kamala under fire over campaign ad targeting black men's love life
Popular Categories
Hot on the Web
Top Trends
Trending Topics
Karwa Chauth Moonrise TimingDhanteras 2024Fake PaneerKarwa Chauth WishesKarwa Chauth Mehendi DesignVicky Vidya Ka Woh Wala Video CollectionKarwa Chauth 2024Salim KhanAvinash MishraBigg Boss 18Kaun Banega Crorepati 16Kiccha Sudeep's Mother Death NewsVettaiyan CollectionBougainvillea Movie CollectionJuhi ChawlaLiam PayneTop Load Washing MachinesBest Premium LaptopsIntel LayoffsWordle Answer
Living and entertainment
Latest News
Diljit Dosanjh becomes 1st Indian artiste to feature on Billboard CanadaDenzel Washington reveals details about his character in "Gladiator II"; says, ‘I hadn’t done that before’Is Kanu Behl's film Despatch, starring Manoj Bajpayee, based on slain journalist J Dey's life?Top 5 Government/Defence schools in Delhi/NCR to consider for quality educationHandling 750 flights daily, Bengaluru's KIA airport celebrates air traffic controllers' critical roleBest Glass Top 3 Burner Gas Stove: Top Recommendations for Gourmet Home CookingKatrina Kaif flaunts mangalsutra during Karwa Chauth celebration with Vicky Kaushal and family'Will not let boat sink, but ... ': RJD hints at going solo in Jharkhand polls'Congressman by birth': Ex Hrayana minister Ajay Yadav makes another U-turn, returns to Congress in two daysRohini blast: Material used in blast outside Delhi school resembles crude bomb, says forensic lab sourcesWhen Janhvi Kapoor recalled about the ‘hectic itineraries’ made by her dad that gave her mother late Sridevi ‘anxiety’Mehendi laga ke rakhna! Trending Karwa Chauth mehendi designsTamil Nadu governor R N Ravi faces the music after omisson of ‘dravida’ from Tamil anthemLiam Payne passes away: Woman tweets that the singer ' jumped off his balcony'Google Pixel 9 Pro Fold review: Your refined AI foldable smartphoneED wraps up two-day raid at MUDA's head office, seizes key documents for investigationNewlywed Arti Singh Prepares for her first Karwa Chauth with hubby Deepak; shares a glimpse with fansHyperX Cloud Mini gaming headset quick review: Go for the comfort
Copyright © 2024 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service