Bank Policy Tuesday: There is one more rate cut in this Fiscal

After the rate cut on Jan 15 and a SLR rationalisation taking RRR to 25% the Central Bank in wake of CPI and GDP data holding up a nascent recovery ( GDP modified to 6.9% on new base year hiding a few but showing better traction to results data from the last three quarters) and lending rates may precede south earlier than the next rate cut before the policy announcements now scheduled in the next fiscal on the first Tuesday of April.

Stock picks wise, I still prefer ITC and Bajaj Auto in FMCG/Durables and IDFC in Financials as October 2015 is the set date for it converting into a bank with ICICI Bank looking like the first to post a lending rate cut int he private sector as the banks increasingly become more responsible for the continuing spate of restructuring and NPAs because of the higher lending rates

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