Shares of rate sensitive sectors mainly banking, real estate and infrastructure are trading higher by up to 8%, extended their previous day’s rally after the Reserve Bank of India (RBI) Governor said the central bank will take note of falling inflation when discussing potential interest rate cuts.
Indiabulls Real Estate, Jaiprakash Associates, Housing Development and Infrastructure (HDIL) and Oberoi Realty from real estate and infrastructure space are up between 5-8% on the Bombay Stock Exchange (BSE).
State Bank of India, ICICI Bank, Yes Bank, Axis Bank and IndusInd Bank from banking has gain in the range of 1-3%.
The BSE banking index Bankex hits a record high of 15,189 in intra-day today, is up nearly 1% at 15,133 at 1352 hours.
Analyst at Bank of America Merrill Lynch expect the RBI to cut policy rates 25bp on June 17 and have preponed another 25bp rate cut to July 30 from October.
The RBI will likely continue to OMO in FY14, to improve liquidity to soften lending rates, assuming a 50bp CRR cut in 2H13. In response, banks will likely cut lending rates by 25bp now and 50bp by September, added analyst.
Indiabulls Real Estate, Jaiprakash Associates, Housing Development and Infrastructure (HDIL) and Oberoi Realty from real estate and infrastructure space are up between 5-8% on the Bombay Stock Exchange (BSE).
State Bank of India, ICICI Bank, Yes Bank, Axis Bank and IndusInd Bank from banking has gain in the range of 1-3%.
The BSE banking index Bankex hits a record high of 15,189 in intra-day today, is up nearly 1% at 15,133 at 1352 hours.
Analyst at Bank of America Merrill Lynch expect the RBI to cut policy rates 25bp on June 17 and have preponed another 25bp rate cut to July 30 from October.
The RBI will likely continue to OMO in FY14, to improve liquidity to soften lending rates, assuming a 50bp CRR cut in 2H13. In response, banks will likely cut lending rates by 25bp now and 50bp by September, added analyst.
