Rate-sensitive stocks gain up to 5% ahead of RBI monetary policy meet

New Delhi: Bank, realty and auto stocks today surged nearly five percent in morning trade on BSE ahead of the Reserve Bank’s policy review meet. [caption id=“attachment_2489444” align=“alignleft” width=“435”]  Reuters[/caption] Among bank stocks, State Bank of India rose 1.06 percent, while PNB jumped 2.01 percent, Federal Bank (4.39 percent) and Yes Bank (2.05 percent) on BSE. Shares of ICICI Bank went up by 0.95 percent and Bank of Baroda saw a rise of 1.38 percent. Accordingly, the BSE bank index was also trading with gains of 0.68 percent at 21,218.24 points at 11.46 hours. Among realty scrips, NBCC surged 0.59 percent, Oberoi Realty gained 2.77 percent and Unitech went up by 5.31 percent. The realty index was trading higher by 0.71 percent at 1288.49 at 11.47 hours. From auto space, shares of Tata Motors advanced by 0.88 percent, Bajaj Auto saw a rise of 0.98 per cent and Hero MotoCorp (1.62 percent). The auto index was quoted at 20,082.86, up 0.68 percent. Home, auto and corporate loans may get cheaper if the Monetary Policy Committee (MPC) goes for a rate cut. Brokers said sentiment remained upbeat as investors prepared for fresh bets in anticipation of a rate cut. The RBI policy meet, scheduled for later in the day, will be the first after demonetisation.