Shares of interest rate sensitive sectors such as the financial sector including banks, non-bank finance companies (NBFCs), housing finance firms (HFCs), microfinance institutions (MFIs), real estate and automobiles traded on a mixed note after the six-member monetary policy committee (MPC) kept The repurchase rate is unchanged at 4 per cent. The MPC also left the reverse repo rate unchanged at 3.35 per cent.
The repurchase rate or short-term lending rate was last lowered on May 22, 2020. Since then, the rate remains at a historic low of 4 percent.
At 10:40 a.m. Nifty Bank and Nifty Financial Services are down 0.04 percent, while the Nifty Auto and Nifty Realty indexes are up less than 0.1 percent, while the Nifty PSU Bank is up nearly 1 percent. By comparison, the benchmark Nifty50 was flat at 17638.75.
Among the individual stocks from the financial sectors, State Bank of India (SBI), Axis Bank, Muthoot Finance, ICICI Bank and Bajaj Finserv rose up to 1 percent, while HDFC and HDFC Bank declined 1 percent on the national exchange ( NSE ) on Friday.
From cars, sales of TVS Motors, Ashok Leyland and Tata Motors each rose 1 percent to 2 percent, while Escher Motors, Mahindra, Mahindra (M&M) and Maruti Suzuki India traded in the red. Of real estate, Macrotech Developers, Prestige Estates Projects and Brigrade Enterprises each rose more than 1 percent, and shares of DLF, Oberoi Realty and Indiabulls Real Estate all declined 3 percent each.
The Reserve Bank of India (RBI) on Friday also raised its inflation forecast to reflect more expensive oil while leaving borrowing costs unchanged after the three-day Monetary Policy Committee meeting.
In its first monetary policy announcement in 2022-23, the Reserve Bank of India forecast inflation to be at 5.7 per cent in this fiscal year, compared to 4.5 per cent in 2021-22. Reserve Bank of India Governor Shaktikanta Das said in a statement on Friday after the meeting that the repo and reverse repo rates remained unchanged at 4 per cent and 3.35 per cent, respectively. The central bank revised its forecast for real GDP growth for 2022-23 to 7.2 percent, compared to its previous guidance of 7.8 percent.