Shillong, August 11: V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, notes that the Reserve Bank of India (RBI) signals a potential rate cut in the first quarter of FY 25, which could pose a challenge for the market.
As per IANS, he anticipates a resilient market with promising prospects for banks, capital goods, and the automobile sector.
Recent US inflation data affirm the notion of a gradual economic slowdown. The Federal Reserve’s likely decision to halt rate adjustments in September is poised to bolster global equity markets.
While the RBI’s message includes a negative aspect regarding the increase in the Cash Reserve Ratio (CRR) to counterbalance the surplus liquidity generated by the withdrawal of Rs 2,000 notes, this sentiment’s impact is expected to be short-lived. The banking sector’s financials are relatively unaffected, given the reduction in Non-Performing Assets (NPAs) and healthy credit expansion in the economy.
On Friday morning, the BSE Sensex experienced a decline of 312 points, reaching 65,375 points. Notable decliners included Sun Pharma, Indusind Bank, JSW Steel, and HUL.
