Most of the stocks from the rate-sensitive sectors were trading in the green in early trade on Wednesday ahead of RBI’s money policy outcome later in the day.
The BSE Realty and Auto indices were trading higher by 0.86 per cent and 0.54 per cent, respectively, around 9.40 am (IST). However, the BSE Bankex was almost flat around the same time.
Rating agency ICRABSE 0.43 % sees a 25 basis points repo rate cut in the policy review, followed by an extended pause.
The rate cut will be supported by modest CPI inflation, which is expected to undershoot the March 2017 target of the Reserve Bank of India (RBI) and the continued fiscal consolidation attempted in the Union Budget for FY2018.
In the BSE Realty index, Indiabulls Real Estate was trading 1.40 per cent higher in early trade, followed by HDILBSE 1.62 % (up 1.17 per cent), Sobha (up 0.96 per cent), UnitechBSE -2.39 % (up 0.90 per cent), DLF (up 0.77 per cent) and Godrej PropertiesBSE 0.89 % (up 0.36 per cent).
Ashok LeylandBSE 1.65 %, Tata Motors, M&M and Eicher MotorsBSE 0.36 % were trading higher by 2.66 per cent, 1.26 per cent, 0.74 per cent and 0.20 per cent, respectively, in the auto space.
Among the 10 components of the BSE Bankex, five were trading in the red, with Axis BankBSE -2.11 % falling the most at 0.66 per cent, followed by IndusInd BankBSE -0.20 % (down 0.66 per cent), ICICI BankBSE -0.50 % (down 0.57 per cent), PNBBSE -1.19 % (down 0.53 per cent) and Bank of BarodaBSE -0.24 % (down 0.21 per cent).
On the other hand, HDFC BankBSE 0.62 %, YES BankBSE 0.15 %, Federal BankBSE 0.48 %, Kotak Mahindra Bank and State Bank of IndiaBSE 0.22 % were up by 0.35 per cent, 0.27 per cent, 0.24 per cent, 0.12 per cent and 0.11 per cent, respectively.