Rate-sensitive NBFC, bank, realty stocks fell after the RBI maintained status quo on repo rate at 6.5 per cent in its monetary policy review meeting that concluded on Wednesday.
NBFC stocks fell despite the RBI reassuring liquidity support to them. RBI deputy governor Viral Acharya’s statement that “measures over the last two months have eased liquidity and there is no need for RBI to help NBFCs as a lender of last resort, in our assessment there is no such necessity at present,” seem to have disappointed market participants who were expecting further liquidity enhancing measures.
Top losers among NBFC stocks on the BSE were Dewan Housing Finance Corporation (-5.49 per cent), M&M Financial Services (-4.04 per cent), Indiabulls Housing Finance (-3.28 per cent), Shriram City Union Finance (-3.16 per cent), IIFL Holdings (-3.17 per cent), Motilal Oswal Financial Services (-2.34 per cent) and LIC Housing Finance (-2.33 per cent).
But analysts said the market’s disappointment with the policy is misplaced. R Sivakumar, head-fixed income, Axis Mutual Fund, said, “The RBI has kept a close eye on the money markets in light of the NBFC liquidity concerns. The RBI further lent support by agreeing to become a lender of last resort to NBFCs should the need arise. This move is a welcome relief to NBFCs.”
The top losers among banks include ICICI Bank (-1.93 per cent), IndusInd Bank (-2 per cent), Yes Bank (-1.64 per cent), Axis Bank (-1.30 per cent) and Kotak Bank (-1.15 per cent). Realty stocks also lost, led by Oberoi Realty (-2.06 per cent), Sobha (-2.81 per cent), Prestige (-2.24 per cent) and Phoenix (-1.99 per cent).