Bajaj Finserv and Axis Bank gained 0.5-1.5 per cent each; Maruti Suzuki and M&M trade weak
The rate-sensitive auto and banking shares are trading mixed after the RBI, on expected lines, maintained the status-quo on benchmark rates and retained an ‘accommodative’ monetary stance. The central bank kept the repo rate unchanged at 4 per cent and the reverse repo rate steady at 3.35 per cent, the RBI Governor Shaktikanta Das said at the end of the bi-monthly Monetary Policy Committee (MPC) review meeting that started on Wednesday.
Among individual financial stocks, Bajaj Finserv, Bajaj Finance, Axis Bank and HDFC Bank have gained 0.5-1.5 per cent each on the BSE. In the auto space, Tata Motors has extended its stellar upmove, with gains of more than 1 per cent. On the other hand, Maruti Suzuki, M&M and Bajaj Auto are trading with losses of up to 1 per cent each.
The Reserve Bank had last cut its policy rates on May 22, 2020 in an off-policy cycle when the covid-19 pandemic first shook the country.
RBI Governor Shaktikanta Das also retained real GDP growth projection at 9.5 per cent for FY2021-22
On the inflation front, Mr Das projected CPI inflation at 5.3 per cent for the current year, while asserting that the central bank will ensure inflation remains within the target range, which is 2-6 per cent.
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