Sensex down more than 300 points
The indication from the Reserve Bank of India (RBI) is that a rate cut can be expected only in Q1 of FY 25 and this will be a headwind for the market, says V.K. Vijayakumar.
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NEW DELHI: The indication from the Reserve Bank of India (RBI) is that a rate cut can be expected only in Q1 of FY 25 and this will be a headwind for the market, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
But the market is likely to remain strong, with banks, capital goods and autos likely to do well, going forward, he said.
Inflation data from the US indicate that the soft landing narrative is intact. The Federal Reserve is likely to pause in September. This will support global equity markets.
The only negative from the RBI’s message on Thursdat is the hike in CRR to neutralise the excess liquidity created by the withdrawal of the Rs 2,000 notes, he said.
The sentimental impact of this decision is unlikely to last long since it will not impact the banking sector’s bottom line much since the NPAs of banks are coming down and the credit growth in the economy is good, he added.
BSE Sensex was down 312 points at 65,375 points on Friday morning.
The major losers were Sun Pharma, Indusind Bank, JSW Steel and HUL.
