Demonetisation: Banks may trim base rate by 360 bps in 3-4 years, says Ambit

While the real fruits of demonetisation will come only in the long term, Saurabh Mukherjea of Ambit Capital tells CNBC-TV18 that demonetisation may lead banks to cut base rate by around 360 basis points in the next 3-4 years. The country's GDP growth will come to a crawl in the last two quarters of this fiscal, he feels. Ambit, in a report, has pegged the GDP growth rate for the second half of this year at a mere 0.5 percent. It has also cut its FY18 GDP growth guidance to 5.8 percent from 7.3 percent."I dont think market will grow at all in the next five months," says Mukherjea.Foreign investors will be looking forward to buy into the market on the dip in the current mayhem caused by demonetisation, he says. He sees Sensex at around 29,000 points by March 2018.Watch video for more.