Steep hike pulls down rate-sensitive stocks

FINANCIAL MANAGEMENT


27/07/2011

Steep hike pulls down rate-sensitive stocks
A steeper-than-expected 50 basis points hike in its key lending rate by the Reserve Bank of India (RBI) saw rate-sensitive stocks fall sharply on the Bombay Stock Exchange (BSE) on Tuesday. The BSE Realty Index was the biggest loser crashing 3.55%, while the BSE Bankex and Auto Index came off by 2.46% and 2.14%, respectively. “The market was caught off-guard by Tuesday's rate hike,” Manasije Mishra, MD & CEO, HSBC InvestDirect, said. “We are already seeing some pressure in terms of higher interest and input costs in the quarterly numbers of companies. This will put more pressure, especially on companies in the capital goods, real estate and automobile sectors," Mishra said, adding that at this moment, investors should avoid taking fresh exposure to such rate sensitive stocks.

Source : https://www.financialexpress.com/news/Steep-hike-pulls-down-rate-sensitive-stocks/822772/