Our Bureau Mumbai, Dec 5 Officials at broking firms and mutual funds do not appear too enthused by the interest rate cuts and other monetary measures announced by the RBI on Saturday; the stock markets having factored this in earlier. "All the new norms have already been discounted by the markets," said Mr Gaurav Dua, Head of Research, Sharekhan Ltd. On Thursday, the Sensex and Nifty gained around 5 per cent each on expectations of both interest rate cuts by RBI and a stimulus package for industry from the Union Government. "The industry was expecting a higher rate cut, so the rate cuts by RBI today is unlikely to affect the market much," said Mr Manish Sonthalia, VP-Equity Strategy, Motilal Oswal Financial Services. If an incentive is to be given to banks to onlend to corporations, they need a higher interest rate cut, he said. RBI's announcements will boost confidence to a certain extent, but to see the impact of these measures one would have to wait and watch, said Mr Nipun Sahni, Head Global Commercial Real Estate, DSP Merrill Lynch. There was some doubt as to whether banks would actually pass on lower interest rates to their customers. "While this move will provide temporary relief to the markets, we have to wait and see if the banks do actually cut interest rates," said Mr Hardeep Dayal, Managing Director, Centrum Infrastructure and Realty. On the real estate front, banks may be too wary of lending to this sector despite RBI's creating a special dispensation to treat loans to housing finance companies as priority sector lending, said market-men. The realty sector is going through a very tough period, and proper direction needs to be provided for this sector, said Mr Sahni. Trying to create demand by cutting rates to this extent might not be enough to boost the real estate sector, especially because there are concerns of an economic slowdown and of unemployment, said Mr Sonthalia. http://www.thehindubusinessline.com/2008/12/07/stories/2008120751260300.htm "Knock, Knock. Who's there? Opportunity. Don't be silly - opportunity doesn't knock twice!" --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
