RBI MPC Policy 2024: Rate Sensitive Stocks Trade Mixed as Repo Rates Remains Unchanged at 6.5%
by Sandip Das on 8 February 2024, 5 min read
On February 8, the RBI-led Monetary Policy Committee maintained the key repo rate at 6.5 percent, (watch video here) signaling an ongoing battle against high inflation. This marks the sixth consecutive pause in the last year, with the repo rate unchanged since the April 2023 monetary policy, following a 250 basis points increase in May 2022 due to moderating inflation. The decision, as expected, had a five-to-one majority for both policy rate and stance.
The CPI inflation forecasts for January-March 2024 have been revised downward from 5.2 percent to 5.0 percent. Similarly, the projections for April- June 2024 also show a reduction in the CPI inflation forecast from 5.2 percent to 5.0 percent.
However, the CPI inflation forecast for July- September 2024 remains unchanged at 4.0 percent. Moving on to the last quarter of 2024, the forecast for October-December indicates a decrease in CPI inflation from 4.7 percent to 4.6 percent. Looking ahead to January-March 2025, the CPI inflation forecast is set at 4.7 percent.
Also read: Can Fin Homes, Castrol India Top 2 Stocks Which Can Give Up To 19% Return
As a result of the RBI policy rate sensitive sectors were trading on a mixed note. The PSU Bank index jumped almost 3 percent. However, selling pressure was seen in auto and realty space.
Top PSU Bank Gainers
- State Bank of India: 5.26%
- Bank of India: 4.99%
- Indian Bank: 4.33%
- Union Bank of India: 4.3%
- Bank of Baroda: 4.01%
The top real estate losers included Sobha, Brigade Enterprises, and Lodha which shed 2-3 percent each. These were followed by Prestige Estates, Godrej Properties, and DLF.
Top Nifty50 Gainers
| Company Name | Last Traded Price (Rs) | % Change |
| State Bank of India | 710 | 5.15 |
| Power Grid | 279.95 | 4.48 |
| BPCL | 621.6 | 3.25 |
| Hindalco Industries | 602.05 | 1.65 |
| HCL Technologies | 1635.05 | 1.22 |
Top Nifty50 Losers
| Company Name | Last Traded Price (Rs) | % Change |
| Britannia Industries | 4969.35 | -2.14 |
| Tata Consumer | 1141.7 | -2.10 |
| UPL | 468.85 | -1.87 |
| Eicher Motors | 3872.5 | -1.40 |
| Axis Bank | 1054.5 | -1.37 |
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
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