We know that all eyes are on the April 17 policy review by RBI and as per available updates it is likely that we may see Reserve Bank of India to cut the cash reserve ratio (CRR) or the repo rate
The same sentiments are also echoed by Chairman Pratip Chaudhuri of State Bank of India which is country’s top lender. He was speaking to reporters after meeting of the bankers with RBI officials ahead of RBI crucial meeting on 17 Apr 2012.
Impact of Rate Cut on Indian Stock Market
Stock market always welcomes a rate cut as it infuses additional liquidity in the market. So net result loans become cheaper and people take home loans or as a matter of fact any loan and it drives consumption. The maximum benefit of a rate cut is seen in banking and real estate stocks.
