RBI may hike rate by 125-150 bps in 2011: RBS

Parul J Saini, Executive Director at RBS Asia Securities thinks that 2011 will be a flat year for Indian equities.

In an interview to CNBC-TV18, he said that there might be some derating due to mixed macro outperformance. Hoping to see inflation above 7% by March, Saini remarked that the Reserve Bank of India may hike 125-150 basis points in 2011. Stockwise, he is positive on HCL Technologies in the IT space, HDFC Bank, SBI in the banking sector. According to him, banks are expensive due to valuations and liquidity concerns. Saini also feels that valuation of L&T is still on the higher side while Bharti Airtel