Mumbai: Interest-rate sensitive realty, banking and auto stocks witnessed heavy selling pressure Tuesday, falling up to 8 percent, after the RBI hinted that there may not be any more cuts in the near-term.
Among realty scrips, Prestige Estates Projects slumped 8.11 percent, Indiabulls Real Estate dipped 6.53 percent, Godrej Properties (5.08 percent), DLF (4.31 percent), Housing Development and Infrastructure Ltd (4.23 percent) on the BSE.
The BSE realty index fell by 3.83 percent to settle at 1,502.52.
Among bank stocks, Canara Bank declined by 4.66 percent, SBI lost 4.28 percent, Axis Bank was down 4.20 percent, Bank of India (3.74 percent), Yes Bank (3.72 percent) and ICICI Bank (3.70 percent).
Following losses in these scrips, the BSE bank index lost 3.46 percent to 20,654.20.
Auto stocks too faced selling pressure, with Hero MotoCorp falling 3.76 percent, Bajaj Auto (2.88 percent), Mahindra & Mahindra (2.56 percent), Maruti Suzuki (1.31 percent) and Tata Motors (1.05 percent).
The auto index slipped 2.08 percent to 18,618.73.
"As expected anything less than 50 bps is not being welcomed by the market. RBI has highlighted risk from below normal monsoon, food inflation, increase in crude prices and external environment," said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.
Home, auto and corporate loans are likely to cost less after RBI today cut interest rate by 0.25 percent for the third time this year to spur investment and growth but hinted there may not be any more cuts in the near-term sending stock markets into a tizzy.
RBI cut the repo rate (short-term lending rate) from 7.5 percent to 7.25, but left all other policy tools like cash reserve requirement unchanged at 4 percent and Statutory Liquidity Ratio (SLR) at 21.5 percent.
In the broader market, the benchmark BSE Sensex fell sharply by 660.61 points to settle at 27,188.38.
