Stock market analyst, Vishwas Agarwal stated, “If institutions feel the pressure due to hike in CRR by the Reserve Bank of India (RBI), then the market may see the BSE Sensex falling to 15,950 or even lower levels of 15,750. But a pipeline of major corporate results may not allow panic selling in the market.”
Welcoming the RBI move, Mr. Agarwal stated that the CRR hike was a crucial step to control increasing inflation.
He expects strong recovery in the equities in the near term once the inflation levels get stabilized.
He also stated that the banking, auto and real estate stocks will have an impact because of CRR hike.