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Rate-sensitive sectors gain despite rate hike

July 27, 2010

INDIA-STOCKS
It was a good day for rate-sensitive sectors like banking, autos and realty as they shrugged off a hike in interest rates by the Reserve Bank of India.

The BSE Auto Index gained 2.4 percent and closed as top sectoral gainer, followed by realty which gained 1.5 percent. The Bankex ended 0.7 percent higher.

Dealers said RBI’s tone was hawkish, but not harsh.

The RBI is likely to raise interest rates more aggressively in the rest of the fiscal year, a new Reuters poll found.

Would you place your bets on rate-sensitive stocks as of now?

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