InvestorQ : Why were the banks and financials not impressed despite the RBI holding rates and also the accommodative policy stance?
Arti Chavan made post

Why were the banks and financials not impressed despite the RBI holding rates and also the accommodative policy stance?

Answer
image
Rutuja Nigam answered.
2 weeks ago
Follow

Most of the rate sensitives like banks, realty, NBFCs and auto stocks took deep cuts after the policy announced status quo on rates and also on the monetary stance at accommodative. While autos were at least mixed, private banks did take a hit. Most of the banking stocks like HDFC Bank, SBI, RBL Bank, Bandhan Bank and PNB corrected close to 1%. However, some of the power finance companies were trading in the green, even as hotels celebrated.

One possible reason for the negative impact on banks could the lowering of the GDP projection by the RBI for FY22. Against the GDP estimate of 10.5% for FY22 in the April policy, the RBI downsized it to 9.5% in the June policy due to the lag effect of the COVID 2.0. The RBI has also projected CPI inflation slightly higher at 5.1% and has also flagged inflation risks due to possible spike in core inflation all over gain and higher crude prices.

0 Views