With the RBI hiking up CRR by 50 bps, Jaiprakash Sinha, of Ambit Capital says that the market sentiment will definitely be on the weaker side. "The sentiments are definitely on the weaker side, so even the good global cues may not be taken up in the morning itself."
However, he adds that this will be a short-lived reaction, which market will absorb quickly. According to him, liquidity concerns have led to this CRR hike.
He feels that there will be a correction in real estate stocks, but says that this is a good accumulation stage for construction stocks.
"What we are looking at in the infrastructure and the construction space is that the fall may not go from here and we will see some amount of rebound. But particularly in terms of real estate, yes, we may see some amount of correction because even if the prices stabilise at the current level, let alone, it come down by 5-10%, that also does not leave too much room for the price appreciation in the stock at this point of time. So they may see some more correction going forward. But on the construction side, our opinion is that at this level it looks like a good accumulation stage," he explains.
