Rate-Sensitive Stocks Surge as RBI Injects Liquidity

Shares of rate-sensitive firms jumped nearly 8% after the RBI announced liquidity infusion of Rs 1.5 lakh crore. This move aims to ease liquidity concerns and potentially reduce interest rates. Major banking and auto sectors saw gains, while the broader market remained underperforming.


Devdiscourse News Desk | New Delhi | Updated: 28-01-2025 20:56 IST | Created: 28-01-2025 20:56 IST
Rate-Sensitive Stocks Surge as RBI Injects Liquidity
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On Tuesday, rate-sensitive shares surged by almost 8% after the Reserve Bank of India (RBI) announced a substantial liquidity injection of Rs 1.5 lakh crore into the financial system. This measure is seen as a potential catalyst for an interest rate cut in the upcoming policy meeting in February, providing much-needed relief to rate-sensitive stocks facing high liquidity deficits.

The benchmark indices experienced a recovery, buoyed by strong performances in the banking and automotive sectors. However, the broader market continued to underperform, failing to capitalize on the positive momentum seen in key sectors.

The banking sector witnessed significant advances with Axis Bank, HDFC Bank, and ICICI Bank leading the charge, contributing to the BSE Bankex index's rise of 813.08 points, or 1.49%, closing at 55,516.37.

(With inputs from agencies.)

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