Markets may correct if RBI hikes rates by 50 bps: Axis Bank

Nilesh Shah, President - Corporate Banking, Axis Bank in an interview with CNBC-TV18 gave his readings and outlook for the markets. He said that there is lack of supply in the market and this is keeping investors continue to hold on to their positions in the market.

"We are likely to see some corrections in the market as supply emerges," he added. Talking about the macro- economic concerns, he said, that with inflation coming at 8.9-8% for last month there are chances of trying RBI to raise the bar by giving 50 bps rate hike. He said that, this will act as a trigger for equity market to recognize the fact that high inflation could have an impact on margin and profitability of the company. Equity markets mat witness a little bit correction if there is a 50 bps rate hike by RBI. Below is the verbatim transcript of his interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying video. Q: We have been stuck in a bit of a rut for a while, which way do you think the market's momentum is pushing? A: We are probably here for some rangebound market for sometime to come. The result season if we see