We expect Realty companies to make the top gainers list today
An expected and uncharacteristically aggressive cut in the Repo rate
(100bps) by the RBI might just prove to be the boost shot for the bulls.
The key indices were in oversold positions after Friday’s sudden crash,
and this could lead to an intermediate pull back. The Nifty could attempt
to touch 3,400 in the near term. However, one should not get too
excited as we are still in for a rough ride going ahead. The RBI move
would provide working capital to cash strapped companies, and some
relief to retail borrowers. However, it remains to be seen how far the
banks will go in tinkering with their lending rates. Deposit rates are
likely to be trimmed first