Here's how rate sensitive stocks have performed since the last RBI policy

RBI
Rate sensitive stocks are in focus ahead of the outcome of RBI Monetary Policy Committee’s (MPC) decision later today. Since the last policy annoucement on february 7, Nifty Realty and Nifty Bank indices have slipped 7.7% and 6% respectively, as compared to 3.3% fall in the Nifty50 index in the same period. Nifty Auto, however, was flat during the same time.

 

The first RBI Policy of FY19 is expected to be a non-event. The six-member MPC is widely expected to keep the repo rate unchanged at 6 per cent on Thursday.

 

 

According to Madan Sabnavis, chief economist at CARE Ratings,"The policy review is in the backdrop of higher economic growth, moderation in inflation, increase in bank credit growth, lower bank deposits growth, tight liquidity conditions and increasing GSec yields in FY18. Prospects of interest rate hikes by US Federal Reserve, European Central Bank and Bank of England will also limit the chances of RBI going in for a rate cut."

 

Back in February, the central bank had raised the inflation projection to 5.1% in the January-March quarter from 4.3-4.7% in the second half of FY2018.

Nifty Bank

 

Among banking stocks, Punjab National Bank fell the most, down almost 40%, since the last RBI policy meet. ICICI Bank, State Bank of India, Axis Bank also fell between 12%-19% during the period, ACE Equity data show. 

  Stock Price (Rs)  
Company Name 07-Feb-2018 04-Apr-2018 % Change
IndusInd Bank 1663.10 1794.05 7.87
Kotak Mahindra Bank 1034.95 1078.20 4.18
RBL Bank 479.00 487.90 1.86
HDFC Bank 1871.40 1884.80 0.72
The Federal Bank 93.40 91.40 -2.14
IDFC Bank 52.20 48.25 -7.57
Yes Bank  333.20 305.65 -8.27
Bank Of Baroda 153.75 139.95 -8.98
Axis Bank 558.70 490.15 -12.27
State Bank Of India 292.75 246.90 -15.66
ICICI Bank  332.25 268.45 -19.20
Punjab National Bank 156.95 94.40 -39.85
Source: AceEquity 

Nifty Realty

In realty index, HDIL, DLF, Brigade Enterprises fell over 10% each. However, Oberoi Realty gained 5.7% 

 
  Stock Price (Rs)  
Company Name 07-Feb-2018 04-Apr-2018 % Change
Oberoi Realty 469.55 496.50 5.74
Prestige Estate Projects 289.50 292.25 0.95
Phoenix Mills 613.20 581.30 -5.20
Unitech 7.37 6.73 -8.68
Sobha 552.85 499.95 -9.57
Indiabulls Real Estate 200.70 180.80 -9.92
Godrej Properties 790.95 712.50 -9.92
Brigade Enterprises  287.00 258.00 -10.10
DLF 225.20 198.55 -11.83
HDIL 51.40 40.60 -21.01
       
Source: AceEquity      

Nifty Auto 

 

Auto stocks, on the other hand, gained with Exide Industries rising 12.7% since February 7; followed by Ashok Leyland, MRF, Apollo Tyres which were up between 8%-9%.

Company Name 07-Feb-2018 04-Apr-2018 % Change
Exide Industries 204.35 230.40 12.75
Ashok Leyland 132.90 145.70 9.63
MRF 68617.60 74860.50 9.10
Apollo Tyres 260.85 281.90 8.07
Eicher Motors 27997.60 28944.40 3.38
Hero MotoCorp 3564.30 3669.95 2.96
Bosch 19241.10 19680.10 2.28
Bharat Forge 706.10 716.30 1.44
Mahindra & Mahindra 747.10 756.95 1.32
Maruti Suzuki India 8919.90 9015.20 1.07
Amara Raja Batteries 790.45 798.00 0.96
TVS Motor Company 648.00 645.35 -0.41
Tata Motors 377.50 355.70 -5.77
Motherson Sumi Systems 354.80 333.10 -6.12
Bajaj Auto 3137.30 2766.35 -11.82
       
Source: AceEquity      


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