The Prime Minister’s December 31, 2016, speech announced subsidies for some categories of housing loans. This has been followed by rate cuts by banks. There are strong rumours that larger tax breaks will be offered for housing loans. If this coordinated initiative works, it would stimulate the real estate market, help placate some victims of demonetisation and improve credit disbursals at banks. But, the market response was negative. The Nifty Bank index got hammered on Monday in the first session after the PM’s speech, losing 1.4 per cent. The Nifty PSU Bank index was hit even harder, losing two per
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