Realty to be worst affected by 50 bps rate hike: Baliga

Ambareesh Baliga of Way2Wealth joins CNBC-TV18 to interpret where the market would head after the somewhat expected, yet surprising 50bps hike in benchmark lending rates by the RBI. He had rightly predicted that the market would react sharply, and as an immediate reaction to the rate hike, the market is down 300 points.

Also, most experts are likely to downgrade the indices now, and that will definitely cap the ability of the market to move ahead, he points out.

Of the sectors, realty is likely to be worst hit, followed by banking and auto, he says.

Below is the verbatim transcript. Also watch the accompanying video

Q: What have you made of this policy and the market reaction, 300 point down now for the Sensex?

A: I am extremely hawkish. Even yesterday afternoon, although we were expecting either no rate hike to maximum of 25 bps which most of the market was expecting, even then, I had made a comment that in case if its 50 bps, we could have the market reacting sharply. That