Friday, June 20, 2008

hmmmmmmmmm

We expect interest rate to go up between 0.5 to 1% after RBI increasing repo rate by 50 bps and CRR hike by 50-75 bps
Impact on Rate sensitive sectors:
(a) Auto: The EMI for 2 wheeler loan may increase by max Rs 50 / month & Cars by Rs 450 / month - impact not very significant
(b) Housing loan: EMI increase may be between 2-5% for the borrowers. Although, impact could be negative on banks and real estate companies, we expect genuine buyers to execute their demand for housing even during such times.

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