CNBC-TV18 reports on the effect that the hike in the CRR will have on two interest rate sensitive sectors, namely real estate and auto.

Analysts say that one of the impact of the hike will be that banks will have to hike their deposit rates. Almost all banks will raise lending rates in the near future. Even if PLR is not upped, banks will lend at higher spread, comment analysts.

Realty Developers are of the opinion that there will be no significant impact on real estate companies. They say the CRR hike effect purely sentimental and there will be no impact on cash flow or balance sheet. The home loan rate hikes will not to impact demand, according to them.

Analysts say the impact on real estate would be that the cost of funds for development will go up. There might be slower demand and a fear of possible cool-off in property prices.

According to analysts, in the auto sector, there will not be too much in 2-wheelers. While some slow down might be seen in lower-end of 4-wheelers only marginal impact will be seen in used-vehicles segment. LCV & HCV sales may not get much impacted, say analysts.