Rate sensitive sector indices gain upto 2% as RBI keeps repo rate unchanged

 Among individual stocks, Bajaj Finance, Mahindra & Mahindra Financial Services, ICICI Bank, and State Bank of India (SBI) logged smart gains

Shares of interest-rate sensitive sectors such as financials including banks, housing finance companies (HFCs), real estate, and automobiles were trading higher by up to 4 per cent on the National Stock Exchange (NSE) after the Reserve Bank of India (RBI) kept interest rates unchanged for the ninth consecutive time on Wednesday.

The policy repo rate remains unchanged at 4 percent and the stance remains accommodative. The reverse repo rate also remains unchanged at 3.35 percent.

At 10:55 am; Nifty Bank, Nifty Financial Services, Nifty PSU Bank, Nifty Private Bank, Nifty Auto, and Nifty Realty indices were up between 1 percent and 2 percent. In comparison, the Nifty50 index was up 1.3 percent at 17,400 points.

"The announcements are on expected lines. We expect some recovery in the broader markets going ahead. Bank Nifty has also gained traction over the past two sessions and is holding the support of its long-term 200-day average at 35,700 levels. There could be more upside in the index as the RBI policy is favorable," said Vikas Jain Senior Research Analyst at Reliance Securities.