Shares of interest rate sensitive sectors like real estate, infrastructure, banking and automobiles are trading lower by up to 4% after recorded a smart rally yesterday ahead of the Reserve Bank's mid-quarter monetary policy review meeting today.
Oriental Bank of Commerce, Vijaya Bank, Central Bank of India and YES Bank from the banking space are down 3-4% on the Bombay Stock Exchange (BSE).
Jaiprakash Associates, IRB Infrastructure, HDIL and DLF from real estate and infrastructure and Hero MotoCorp, Bajaj Auto and Maruti Suzuki India from automobiles are down 2-3% at 0950 hours.
The market expert believes that the RBI may roll back its tightening measures taken in order to contain the forex volatility in its monetary policy review.
“There is a chance that RBI may reverse partly, the monetary tightening measures it took during the second week of July 2013 and afterwards to address the currency crisis,” says V. Balasubramanian, fund manager – equity and gold at IDBI Mutual.
The moves that RBI may take today are expected to aid growth which is a welcome feature for the markets, he adds.
Oriental Bank of Commerce, Vijaya Bank, Central Bank of India and YES Bank from the banking space are down 3-4% on the Bombay Stock Exchange (BSE).
Jaiprakash Associates, IRB Infrastructure, HDIL and DLF from real estate and infrastructure and Hero MotoCorp, Bajaj Auto and Maruti Suzuki India from automobiles are down 2-3% at 0950 hours.
The market expert believes that the RBI may roll back its tightening measures taken in order to contain the forex volatility in its monetary policy review.
“There is a chance that RBI may reverse partly, the monetary tightening measures it took during the second week of July 2013 and afterwards to address the currency crisis,” says V. Balasubramanian, fund manager – equity and gold at IDBI Mutual.
The moves that RBI may take today are expected to aid growth which is a welcome feature for the markets, he adds.
