Banks not inclined to raise rates
Reports indicate that banks are unwilling to pass on the rate hike to the customer. RBI yesterday raised repo rates by 25 basis points. Stocks from the sector might see some pressure on this news.
It would be interesting to see what sector might take charge in case of a renewed upmove today. But Banks and Autos will lead the correction in case yesterday's slide extends.
Today's trade is very important from a short term direction perspective. For investors this market is too confusing to invest in. But there are many stocks that have not participated in the rally with better fundamentals. We see these stocks performing well in the next one month irrespective of a correction