After the cheer, RBI blows it up for the stock market

Markets continue to react negatively to the tough stance taken by the RBI after it blew the bugle on its war against inflation in Friday’s credit policy announcement, observed Sachin Karpe. While the hike in REPO may not be as unfavourable as the markets may make it look at this point in time, the reaction in the market being witnessed currently, is also a fallout of the impending expiry of the Sep series in F&O Contracts, feels Sachin Karpe.

Banks, particularly the bigger ones (PNB, SBI, BoB, AXIS, HDFC) continue to see lack of interest from investors while the Pharma and FMCG space, despite fears of high-valuations continues to draw favour. Sachin Karpe also observed that some of the Power sector stocks too are witnessing mild accumulation by traders in anticipation of some favourable announcements from New Delhi.