Analysts believe that this reduction in gold duties could lead to lower gold prices, which could negatively impact gold loan companies in the near term by diminishing their financial cushion or 'margin of safety.'
The pain of the demonetisation drive seems to be reducing, says George Alexander Muthoot, MD of Muthoot Finance. He expects no de-growth in this quarter and has a growth target of 18-20 percent as things get better.
Rajesh Kothari, Managing Director, Alfaccurate Advisors expects stocks to give 20-25 percent returns. He says this year doesn‘t belong to taking major calls on the market either on the upside or downside.
Ajay Bodke, head- Investment Strategy & Advisory, Prabhudas Lilladher prefers private banks like ICICI, J&K and Yes Bank over public sector lenders.