Will RBI's Dec promise set mkt mood? Experts say likely

Moneycontrol Bureau

India's central bank has done it again. Slashing down the growth forecast, governor Subbarao and his team today, raised its key rate to 8.5% from 8.25%, the 13th increase since March last year. And, almost immediately banking shares were seen reeling under selling pressure. While the bankers have also been served with an immediate deregulation of savings bank interest rates, the question on Dalal Street is whether the banking sector is the Achilles' heels of the market.   Talking to CNBC-TV18, Sanju Verma of Violet Arch Capital Advisors agreed to the sentiment that there is no longer a buy mode on banks. "I would rather sell some of them now," she reacted; post the credit policy announcement today. However, Nilesh Shah of Axis Bank said that Reserve Bank