Rate-sensitive stocks pull up shagging market jump nearly 8 pc after RBI lines up liquidity booster

New Delhi, Jan 28 (PTI) Rate-sensitive shares on Tuesday jumped nearly 8 per cent after the RBI decided to inject liquidity of Rs 1.5 lakh crore into the financial system.
     The move is anticipated to ease liquidity conditions and increase the likelihood of an interest rate cut at the upcoming RBI policy meeting in February, offering relief to the rate-sensitive stocks amid concerns over high liquidity deficits.
    "While the benchmark indices recovered, led by strong performance in the banking and auto sectors, the broader market continued underperformance.
    "On the sectoral front, 5 out of 12 sectors, realty, finance, bank and auto gained the most, while pharma, energy, media, oil & gas, IT, metal and FMCG declined the most," Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.
    The scrip of Axis climbed 3.82 per cent to close at Rs 984.10 apiece, HDFC Bank jumped 2.51 per cent to Rs 1,670.55, ICICI Bank rose 1.54 per cent to Rs 1,246.95, and Bank of Baroda increased 1.07 per cent to Rs 221.95 apiece on the BSE.
    In addition, IndusInd Bank stock rose 0.92 per cent to close at Rs 934.45 apiece, State Bank of India increased 0.33 per cent to Rs 751.65, Kotak Mahindra Bank appreciated by 0.33 per cent to Rs 1,886.75 and Canara Bank shares edged up 0.16 per cent to Rs 92 per piece.
    However, the securities of Federal Bank depreciated 3.61 per cent to close at Rs 184.10 apiece, and Yes Bank slipped 0.70 per cent to end at Rs 18.37 apiece on the exchange.
    Axis Bank, HDFC Bank, and ICICI Bank were among the top gainers in the 30-share Sensex pack. Led by the gains in these stocks, the BSE Bankex index surged 813.08 points or 1.49 per cent to close at 55,516.37.
     Among financial services stocks, Cholamandalam Investment and Finance climbed 5.44 per cent to close at Rs 1,239.15 apiece, Bajaj Finance advanced 4.27 per cent to Rs 7,604.70, and Shriram Finance rose 3.54 per cent to finish at Rs 529.75 per share.
     The BSE Financial Services indices climbed 154.34 points or 1.45 per cent to close at 10,808.64.
    In the realty space, the scrip of Sobha soared 7.81 per cent to end at Rs 1,287.90 per piece, DLF climbed 3.36 per cent to Rs 726.70, Godrej Properties jumped 3.07 per cent to Rs 2,162.55, and Macrotech Developers rose 2.55 per cent to Rs 1,130.85 on the BSE.
    Oberoi Realty decreased 0.77 per cent to end at Rs 1,672.60, and Brigade Enterprises went lower by 0.33 per cent to Rs 1,015.20 per share.
    The realty gauge rose 83.89 points or 1.27 per cent to settle at 6,684.18
    Among auto stocks, TVS Motor Company's shares climbed 4.85 per cent to end at Rs 2,334.95 per piece, Tata Motors increased 2.15 per cent to Rs 728.45, and Mahindra & Mahindra appreciated by 1.26 per cent to finish at Rs 2,868.05 apiece on the exchange.
    The auto index also soared 574.50 points or 1.16 per cent to close at 50,049.90.
    The 30-share Sensex climbed 535.24 points or 0.71 per cent to settle at 75,901.41. During the day, the benchmark surged 1,146.79 points or 1.52 per cent to hit a high of 76,512.96.
    The broader 50-share NSE Nifty appreciated by 128.10 points or 0.56 per cent to close at 22,957.25.
    On Monday, the Reserve Bank of India said it will purchase government securities worth Rs 60,000 crore in three tranches and announced several other steps to inject liquidity into the banking system.
    As part of measures to manage liquidity conditions, the central bank also announced a USD/INR Buy/Sell Swap auction of USD 5 billion for a tenor of six months to be held on January 31, 2025.
    To inject liquidity, RBI said open market operations (OMO) purchase auctions of Government of India securities for an aggregate amount of Rs 60,000 crore in three tranches of Rs 20,000 crore each will be held on January 30, February 13, and February 20.
    Besides, a 56-day Variable Rate Repo (VRR) auction for a notified amount of Rs 50,000 crore will be held on February 7.
    "The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions," the RBI said on Monday.

(This story has not been edited by THE WEEK and is auto-generated from PTI)