Rate-sensitive bank auto realty stocks end higher

Rate-sensitive stocks bank, auto and realty -- rallied on Wednesday after the Reserve Bank of India expectedly left its key interest rates unchanged as it waited for greater clarity on the impact of US tariffs as well as the rollout of earlier rate cuts and recent tax reductions.
RBI Governor Sanjay Malhotra, however, signalled scope for easing in the coming months to support the economy from any possible hit from the US tariffs. Indian equity markets staged a strong rebound after eight consecutive sessions of decline, with the Nifty-50 closing 225 points higher at 24,836. Banking and financial stocks led the upmove, supported by the RBI's dovish stance that hinted at future rate cuts.
Among bank stocks, Kotak Mahindra Bank climbed 3.45 per cent, Axis Bank went up by 2.43 per cent, Yes Bank (2.40 per cent), ICICI Bank (1.77 per cent), HDFC Bank (1.48 per cent), IndusInd Bank (1.11 per cent), Bank of Baroda (0.46 per cent) and Federal Bank (0.36 per cent).
The BSE Bankex index jumped 1.44 per cent to 62,401.58. "After having fallen for the past eight trading sessions, a relief rally came to the fore, backed by factors like an upsurge in banking stocks, positive global cues, and appreciation in the rupee. Although the repo rate was unchanged, the RBI's governor's optimism with regards to softening inflation and upgrading the growth prospectus for FY26 boosted investors' sentiment," Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.
From auto counters, Tata Motors surged 5.54 per cent, MRF went up by 2.14 per cent, Mahindra & Mahindra (1.26 per cent), TVS Motor Company (0.61 per cent), Sona BLW Precision Forgings (0.47 per cent) and Samvardhana Motherson International (0.40 per cent). The auto index rallied 0.74 per cent to 59,694.84. The realty index climbed 1.11 per cent to 6,815.23.